The European Central Bank (ECB) is reportedly publishing a letter later this month outlining plans for a data warehouse of underlying loans that back ABS deals.
Access to ABS loan-level data could be key to unlocking the European securitization market. It should also further the ECB's goal to create greater market transparency.
According to a Reuters report, eight ABS originators and investors have formed an independent industry group that will contribute to the ABS data warehouse blueprints.
The group will issue a formal request for information around April 28. This will hopefully incite market players to help build the data warehouse with a view to selecting a suitable candidate to work on this in July 2011 so it can be ready to launch by July 2012.
RMBS will be the first asset class that will be required to follow the ECB's loan-by-loan data requirements, with other ABS classes to follow, according to the Reuters report.