Importance of securitization in different sectors
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There have been a lot of re-structurings since the 2008-09 credit crisis when new issuance of ABS fell off the cliff. And these are not really new business and therefore your interviewers were correct with regard to secondary market trading in CDOs being way down. Most CDOs actually falded after the credit crisis and the only thing type of business in securitisation was government agency. So again your interviewers were correct.
3. But there is a lot of existing paper that needs to be checked because the final rule of asset-backed securities was finally adopted last year. Basically certain asset classes will have their own specific disclosure regimes.
4. Also, the Final Rule on Credit Risk Retention has been adopted in Oct 2015 which requires vertical and horizontal risk retention, and practically speaking, it is a mess. So more work for consultants is coming.
3. But there is a lot of existing paper that needs to be checked because the final rule of asset-backed securities was finally adopted last year. Basically certain asset classes will have their own specific disclosure regimes.
4. Also, the Final Rule on Credit Risk Retention has been adopted in Oct 2015 which requires vertical and horizontal risk retention, and practically speaking, it is a mess. So more work for consultants is coming.
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