‘Quantum physics’ in ABS as IFRS 9 hurts investment

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By Owen Sanderson
05 Jun 2018

IFRS 9 accounting rules are cutting certain investors out of some ABS asset classes all together, with auto lease ABS likely to be hardest hit, according to panellists speaking at Global ABS on Tuesday.

The new accounting rules landed in January this year, but their effects are only now rippling through the market – with potential damage for asset classes which can’t meet a test called the “SPPI” – meaning loans consist of ‘solely payments of principal and interest’.

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