Current Issues in Securitization

SUMMARY

The Committee on Structured Finance issued a report and white paper based on the “Current Issues in Securitization” program that the Committee sponsored on April 14, 2015. The program featured presentations on recent regulatory developments affecting securitization as well as recent developments relating to specific sectors of the securitization market, all of which is summarized in the report.

This paper surveys many of the new legal and regulatory developments that securitization lawyers and their clients are now facing. These include risk-based capital regulations, so-called “high quality securitizations,” liquidity ratios for banks, required risk retention by securitizers, the Volker Rule, and the SEC’s update to Regulation AB. The paper also examines developments that are special or unique to specific asset classes, including auto loans, collateralized loan obligations, whole business securitizations, commercial mortgage-backed securities, covered bonds, student loans, peer-to-peer loans, and derivatives.