BARCELONA - European ABS investors say they'd like more information prior to the close of a deal - along with more time to mull it over. And at Information Management Network's global ABS summit, participants said that both prospectus and ongoing monitoring data were much more comprehensive for U.S. deals than for European offerings.
Recently enacted securities offering reform regulations within the U.S. have worked to limit the type of information released to investors prior to the close of a deal. Essentially, market participants under the new regulations have been dissuaded from releasing deal information outside of a formal prospectus because it may be incomplete or subject to change. If investors were to make a buy decision based on the flawed data, the sellers could be held liable.