Regs to drive down volumes and underwriting standards, say issuers

By Tom Porter
23 Sep 2014

Incoming regulations will penalise smaller issuers and pull down volumes, intensifying a search for yield from investors that is already leading to weaker underwriting practices, a trio of US asset backed securities issuers told an audience at ABS East in Miami on Monday.

“The whole idea of making a consumer loan, reporting on it, and then actually collecting from the people who borrowed is under various levels of assault,” said Ken Ruggiero, chief executive of Goal Structured Solutions, neatly summing up the mood in the wider market over the ...

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