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Article by Charles M. Horn , Julie A. Gillespie , Paul A. Jorissen , Jason H.P. Kravitt , Stuart Litwin , Elizabeth A. Raymond , Angela M. Ulum and Jo...
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Article by Christopher B. Horn, , J. Paul Forrester, , Julie A. Gillespie, Carol Hitselberger, Paul A. Jorissen, , Jason H.P. Kravitt, , Stua...
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This guide is an introduction to ABS, presented from the point of view of the investor. It proposes a breakdown in simple notions, which enable a part...
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Asset-backed securities (ABS) are bonds backed by the cash flow of a variety of pooled receivables or loans. Firms issue ABS to diversify sources of capital, borrow more cheaply, reduce the size of their balance sheets, and free up capital. In August 2007, the ABS market began shrinking in stages, with bond issues backed by residential mortgages drying up first, followed by the collapse of both the consumer ABS (auto, credit card, and student loan segments) and the commercial mortgage-backed securities markets. To help ease the strain on the ABS market, the Fed introduced the Term Asset-Backed Securities Loan Facility on Nov 25, 2008. In this article, the authors examine two specific types of ABS -- credit card and auto floor plan -- to provide some insight into their significance to th...
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On July 26, 2011, the Securities and Exchange Commission (the "SEC") re-proposed rules (the "Re-Proposal")1 regarding new shelf eligibility requiremen...
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Article by Charles M. Horn , Julie A. Gillespie , Paul A. Jorissen , Jason H.P. Kravitt , Stuart Litwin , Elizabeth A. Raymond , Angela M. Ulum...
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WASHINGTON (Reuters) - U.S. securities regulators gave investors a closer look before they buy asset-backed securities with the adoption of two new rules on Thursday [Jan. 20]. Both rules were required under last year's Dodd-Frank financial reform law and respond to huge losses seen during the financial crisis by holders of securities backed by subprime mortgage loans.
The first rule, approved unanimously by the Securities and Exchange Commission, aims to give investors a way to review the track record of asset-backed issuers such as Bank of America.
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The relative attractiveness of highly-rated asset-backed securities (ABS) for community bank portfolios has improved dramatically in recent months due to major dislocations in the credit markets. Although the subprime home equity loan sector remains fraught with peril, spreads on the non-mortgage ABS sectors have widened considerably due to subprime contagion and warrant a fresh look by community banks. There are three reasons why banks should consider AAA-rated auto ABS for their investment portfolios: 1. The securities provide a pick-up in spread compared to typical bank investment products. 2. Bonds rated AAA or AA are risk-weighted at 20% for regulatory capital purposes under Basel I. 3. These securities can help to diversify a bank's investment holdings. Before investing man auto A...