It has been a long wait, but after nearly 30 years in
business the US securitization industry can at last look
forward to operating under a coherent, overarching set of
rules. With the adoption in December of a final draft of
Regulation AB and related rules, the Securities and Exchange
Commission is finally addressing some of the fundamentals of
one of the most important and growing sectors of the financial
The first SEC-registered asset-backed securities (ABS)
offering was made in 1977 - an offering of residential mortgage
loan pass-through certificates issued by the Bank of America.
In that transaction, the staff of the SEC worked closely with
the issuer and underwriters to fashion appropriate prospectus
disclosure for the new investment vehicle. The deal, and other
firsts involving other asset classes and structures, became the
templates for disclosure in the US public asset-backed
The market itself has grown beyond the...