Looming implementation drives US ABS volumes

Author: Edward Price | Published: 15 Jan 2016

As the January 2017 implementation deadline for US risk retention rules looms, counsel expect 2016 to be one of the busiest years in the history for asset-backed securities (ABS).

"The busiest quarter we’re ever going to see in the history of the securitisation market, in particular for lawyers, is going to be the fourth quarter of this year," said Stuart Litwin, partner at Mayer Brown, at a recent Mayer Brown teleconference on securitisation.

According to Litwin, a lot of issuers will accelerate the timing of transactions to issue ABS before the deadline in January. That, and other factors including  the continuing strength of the auto-ABS market, will make for a strong 2016.

"Clearly there’s been bumpiness in pricing, and that’s held some issuers back, but I think the overall securitisation market will do very well," said Litwin, who believes ABS in particular, will thrive. ...