Insider trading risk delayed ABS deals in early 2020

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By Tom Brown
05 Oct 2020

Concerns around disclosure of mortgage forbearance figures and payment holidays led to deals scheduled for issuance earlier in 2020 being delayed to later in the year, as issuers feared securitization investors having access to information not widely disseminated to other investors.

GlobalCapital understands that several deals which arrived after June were delayed until banks had made public financial statements to all investors about the proportion of their mortgage book affected by a request for a payment holiday from borrowers.

Bank mortgage books typically comprise 10%-20% of the bank’s balance ...

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