The full implementation of Basel III is still years away, but it is already impacting key areas of the securitization market such as mortgage servicing rights. The impact of its liquidity ratios on market participants will likely be felt as early as this year.

Basel II and related rules in 2010, dubbed Basel 2.5, have already reshaped the securitization market by easing capital requirements on investment-grade transactions and ramping up those requirements on the non-investment-grade variety. Basel III, which won't be fully implemented until 2018, incorporates the earlier Basel capital rules and refines how they are applied, and it also introduces new liquidity ratios by which banks must abide.

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