Autos could go private to avoid enhanced disclosure

General Motors
By Will Caiger-Smith
28 Aug 2014

After the SEC approved loan-level disclosure rules for public transactions, auto lenders may be pushed towards issuing their ABS deals in the private market, said analysts this week. The shift could come even as the sector comes under increased regulatory scrutiny.

With regulators examining underwriting standards at the subprime auto lending units of GM Financial and Santander Consumer USA, investors might welcome the enhanced loan-level disclosure for auto ABS collateral required by Reg AB II, which was adopted on Wednesday.

But the new rules might actually lead to ...

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