Basel Benefits Monoline Wrap

In addition to top-rated private-label mortgage-backed securities and home-equity loan securities, a new proposal from the Basel Committee for Banking Supervision would likely benefit monoline wraps, according several market players.

Monoline insurers, among others, stand to benefit under the new regulatory regimen based on a ratings-driven approach for risk-weightings of all securitizations held by banks, said Peter Hoey, a managing director at Financial Security Assurance.