US financial reform bill deals ABS market unexpected blow

22 Jul 2010

US president Barack Obama only signed the financial reform bill into law this week but already the structured finance market has been hit by an unintended consequence of one of its more obscure provisions.

Ford Motor Credit Co pulled a planned securitisation of auto loans on Thursday because rating agencies have refused to give consent to their ratings being used in registration statements since the law’s passage. A provision of the Dodd-Frank reform bill removed the agencies’ exemption, known as 436(g), from ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial