Both delinquencies on securitized student loans and prepayment rates on student loan ABS are up and could increase further due to the Biden administration’s efforts to help distressed borrowers.

Cybersecurity disclosure rules for ABS should be focused on primary servicers, the Structured Finance Association said in comments to the Securities and Exchange Commission.

The SEC’s proposal on disclosure requirements and other standards for hedge funds, private equity funds and venture capital funds could have negative impacts for CLOs, SFA and others warn.

A new SEC proposal wouldn’t set climate-related disclosures for MBS and ABS, though such standards are still under consideration.

Acting Comptroller of the Currency Michael Hsu said the OCC will continue to ensure banks are not used as a vehicle for "rent-a-charter" arrangements.

When looking at activity by rating services in 2020, the SEC found problems involving ABS and CLOs, among other issues. The regulator as usual didn’t identify the offenders.

The Structured Finance Association said the SEC’s Exchange Act Rule 15c2-11 would lead to illiquidity in the ABS market.

Changes implemented in response to the financial crisis of 2008 helped the MBS and ABS markets perform better than expected at the onset of the pandemic.

During a Capitol Hill hearing, House Democrats focused on credit rating shortcomings that allowed for the subprime crisis of 2007-2008 and inadequate reforms that followed.

One of the five draft bills proposed by the House Democrats this week seeks to establish a board that would be responsible for assigning rating services to provide grades on MBS and ABS.