Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Regulators Jointly Approve New Risk Retention Rules

Joe Mont | October 22, 2014

The Securities and Exchange Commission on Wednesday adopted final rules for the asset-backed securities market that will require securitizers to keep “skin in the game.” By a 3-2 vote the Commission, in joint-rulemaking with other regulators, will require them to retain no less than five percent of the credit risk of the assets they securitize.

Asset-backed securities (ABS) are created by buying and bundling loans to create investment products backed by those assets for sale to investors. Loan bundles are typically divided into separate securities with different levels of risk and returns.

In a statement prior to...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.