Argentine regulators have imposed a new rule on tranche issuance that could broaden the investor base for ABS while it simultaneously cools activity. Additional proposed changes might have a more chilling effect.

Leery of the popular practice among consumer finance originators of snapping up the most junior tranches of their own ABS deals, the national securities commission (CNV) instituted on Dec. 6 a rule requiring that these pieces, known as participation certificates, be offered to the general public and, by that token, have at least one rating.

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