International Asset Transactions (IAT), a New York-based independent firm specializing in the securitization and trading of illiquid securities, is readying its first conduit, a USD12.5 billion structure that will invest in asset-backed securities and medium-term notes and will use over-the-counter credit, fixed income and foreign exchange derivatives. Gus Udo, president and ceo in New York, said the structure, dubbed SuperLumina, is being forged to benefit from recent regulatory and accounting changes, including Financial Interpretations accounting rule 46, known as Fin 46. A Fitch Ratings report predicts that a consequence of Fin 46, as well as the impending Basel 2 accord, will be a reduction in bank-sponsored conduits referencing asset-backed commercial paper and this presents opportunities for established, independent firms to step into the void, he noted. It is called SuperLumina because it aims to shed light on assets that are normally ignored.
May 26, 2003
