Better Braking for ABS: Reform Proposals for the Asset-Backed Securities Market

David Allan and Philippe Bergevin
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David Allan: Tao Group of Companies
Philippe Bergevin: C.D. Howe Institute

No 123, e-briefs from C.D. Howe Institute

Abstract: The market for asset-backed securities (ABS) – financial instruments backed by underlying assets such as mortgages – suffered a major setback in 2007, as a cascade of downgrades and defaults brought turmoil to credit markets and the world economy. Authorities in the United States have since proposed sweeping changes to the ABS market. The Canadian Securities Administrators, representing provincial securities commissions, recently released a discussion paper proposing similar reforms, which would require: (i) sharply enhanced transparency in ABS structures, (ii) CEO certification of the adequacy of such structures, and (iii) disclosure of previous asset repurchases by the securities’ sponsor.

Keywords: Financial Services; asset-backed securities (ABS); credit markets (search for similar items in EconPapers)
JEL-codes: G12 G15 G18 (search for similar items in EconPapers)
Pages: 4 pages
Date: 2011-09
New Economics Papers: this item is included in nep-ban
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Published on the C.D. Howe Institute website, September 2011

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Persistent link: https://EconPapers.repec.org/RePEc:cdh:ebrief:123

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