ABS and MBS servicers - particularly those that use derivatives to hedge against fluctuations in the fair value of the assets that they oversee - had another cause to raise a pint on St. Patrick's Day, after the Financial Accounting Standards Board (FASB) issued guidelines that simplified the accounting for servicing assets and liabilities for most MBS deals.

The Statement of Financial Accounting Standards 156, which amends FAS 140, allows servicing companies to record servicing assets and liabilities at their fair value, instead of using the lower-of-cost-or-market accounting method.

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