Disclosing loan-level data is crucial to rebuilding investor confidence in mortgage-backed securities. It also introduces the risk of compromising borrowers' personal information.
Wells Fargo has increased its forecast for issuance of U.S. collateralized loan obligations, to $80-$90 billion from $60 billion previously, on expectations that banks will continue to be able to invest in these deals.
The decline did not impact broader demand for leveraged loans used as collateral, as first quarter issuance rose 7% from the last quarter of 2013, to $276 billion.
The trade group has asked the SEC for a 60-day extension to the comment period, which ends March 28.
Some $50 billion of credit card ABS matured in 2013, but Fitch Ratings expects this figure to fall to roughly $41 billion in 2014 and then to just over $21 billion in 2016.
Direct exposure to either J.C. Penney or Sears is typically highest in seasoned deals where there are only a small number of loans remaining, and one is secured by a retail property.
Risk-retention rules could thin the ranks of CLO managers; the industry was hoping for a workaround, but what it got is pretty much unworkable.
The U.S. market for collateralized loan obligations would shrink by 75% if proposed risk-retention rules are implemented, according to the Loan Syndication and Trading Association.
Longstanding tensions within the American Securitization Forum (ASF) boiled over in March, when most of its board of directors resigned and formed a new trade group.
By tweaking one aspect of its methodology for rating securitizations, Moodys Investors Service has set the stage for more downgrades of deals issued out of peripheral Eurozone countries.