The securitization market is gearing up for its response to the Securities and Exchange Commission's long-anticipated framework for the industry. The 400-plus page proposal is expected to hit the Federal Register this week, kicking off a 60-day comment period. The broadest response is expected to come from the American Securitization Forum, which plans to set up a special taskforce to formulate its reply to the proposals. The taskforce will be chaired by representatives from the issuer and investor community, said George Miller, managing staff advisor of the ASF, who added the proposals will be a major topic at its upcoming annual meeting.
Still, some said the proposals will be too vague and the comment period will be critical because it will help shape specifics. "To the extent to which the SEC does not mandate specifics, investors will get generalities," said Dan Stachel, head of global short-term credit research at State Street global Advisors. "The natural tendency will be for [issuers] to provide the least information possible and comparability will be lost," he warned.
The Bond Market Association also plans to comment, because even though the ASF is a part of the dealer group, their constituents are from different sectors. "We're geared up and ready to go, the most important part of the process is the comment process," said Nadine Cancell, assistant general counsel. "Hopefully, it comes out near a weekend," she said of the 400-page proposal.