The SEC adopted two sets of rules governing disclosure for asset-backed securities.  In new Form ABS-15G, issuers must disclose 3 years of repurchase history for the pooled assets so that investors “may identify originators with clear underwriting deficiencies.”  Similar disclosure will be required in prospectuses for ABS “of the same asset class.”  ABS issuers will also be required to conduct a review of ABS assets to “provide reasonable assurance that the prospectus disclosure about the assets is accurate in all material respects.”  The review may be conducted by a third party.  The SEC indicated that the rules “are designed to help revitalize the important asset-backed securities market by encouraging better disclosure for investors.” 

OUR TAKE: The buy-side should welcome these rules because they will enhance transparency. 

 http://www.sec.gov/news/press/2011/2011-18.htm