Even though the Securities and Exchange Commission (SEC) has given securitization issuers six months to omit credit ratings from ABS registration statements filed under Regulation AB, the ABS industry still has to work on a long-term solution to the unintended consequences of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

"We expect that regulators, issuers and the rating agencies will find a way to reconcile the conflict between Dodd-Frank and the SEC disclosure requirements," wrote researchers from Wells Fargo. "However, in the near term, new ABS issuance is likely to be constrained. We find it ironic that the ABS market is being hindered by references to credit ratings at a time when the SEC and other regulators are proposing less reliance on credit ratings."

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