Highlights from ABS Vegas: Final Reg AB II Rule
The Intralinks Debtspace team ventured out west for ABS Vegas 2015. The expansion of Regulation AB (dubbed Reg AB II) was a hot topic of conversation.
15 April 2015
The Intralinks Debtspace team ventured out west for ABS Vegas 2015, the largest capital markets conference in the world representing the structured finance industry. The expansion of Regulation AB (dubbed Reg AB II) was a hot topic of conversation. Attendees from both the buy-side and sell-side have concerns about the new rules and how it might impact issuance volume and overall investor appetite for asset-backed securities (ABS).
To give you some background, Reg AB II was adopted by the SEC last year. It governs the offering process, disclosure and reporting requirements for registered public offerings of ABS. Check out Hunton & Williams’ site to find some guidelines that introduce the new requirements, and keep in mind that the rules may only affect a limited number of asset classes and do not apply to all worldwide securitizations.
Heard on the Street…
Our conference booth quickly became a stomping ground for Reg AB II chatter. Here are a few things that I heard:
The bulk of information affects the way in which investors buy and sell, as well as their stress-testing and risk analysis of portfolios. Regulators should stop to take stock of the true impact on investors before additional regulations are drafted.
The Final Rules are extensive. Asset-level reporting, expanded eligibility requirements for shelf registration and additional prospectus disclosures will require more oversight from the sell-side as they structure their deals.
Complying With Reg AB II
Data overload seems to be the consensus, but I’m still trying to wrap my head around Reg AB II and the impact it’s having on the structured finance community. I’d like to hear what you have to say.
- How are the reforms affecting your practices?
- Do you think asset-level disclosure requirements will work to improve investors’ willingness to invest in ABS and lead to recovery of the ABS market?
You can add your thoughts in the comment box below.
At Intralinks I work to help organizations across highly regulated industries to comply with stringent deal reporting requirements. To learn more, check out Intralinks for Structured Finance.
Kylie Horner is an Associate in Strategy and Product Marketing at Intralinks. She is part of the team responsible for determining go-to-market strategies for the debt capital markets and alternative investment businesses. Prior to joining Intralinks, Kylie worked in marketing and communications at ACTIV Financial, a financial information technology firm. She graduated from the University of Colorado at Boulder with a degree in Journalism, and a specialization in global media.