As in other segments of the industry, the Internet is creeping into the analytical side of the asset-backed securities game, a precursor of bigger things to come, according to the minds behind Chase Securities Inc.'s new online "trustee reporting" prototype.
Theoretically, as deals continue to get done, Chase's Web site will continually update information the company is privy to (as a frequent trustee and underwriter). The information will serve as a toll-free tool to analysts and players on the secondary market.
"This is aimed at investors who want to know more about a particular ABS or MBS security, and want to be able to see how the underlying collateral are performing," said Conrad Kozac, senior vice president at Chase.
"It's just a way of making the work that has to be done by the people in the secondary market - who are investing in these things and trying to make decisions - it makes their research and analysis a little bit more convenient," Kozac said. "It's valuable for investors and ratings agencies to see how the assets and the structure are performing over time."
Though Kozac stressed this service is far from a trading tool, he noted the possibility that a product like this could evolve into a more significant part of the trading process.
"Obviously, the more data that is available, the easier it is for anybody to invest in that market," said Kozac. "And obviously, the smaller the resources of the person you're talking about, the greater the utility of a service like this."
Though the trustee reporting system is fully functional at this time, Kozac said that the service is still in the preliminary stages with regards to data.
"Over time, as more and more transactions are added to it, the database will become richer and richer," he said.
"Going forward we'll see incremental value added, and we're going to be very much focused on greater access to better information and analysis."
Chase's trustee reporting system can be accessed free of charge at www.chase.com/sfa.
