The Securities Industry and Financial Markets Association (SIFMA), the American Securitization Forum (ASF) and the European Securitization Forum (ESF) have formed a global working group with the intention of restoring confidence in the securitization markets.
The initiative will be co-led by Sanjeev Handa, head of global public markets at TIAA-CREF and Jeffrey Perlowitz, managing director and co-head of global securitized markets at Citigroup.
Other senior-level working group members represent a cross-section of these markets globally, and include investors, issuers, financial intermediaries and other stakeholders.
The group will create and publish industry-developed recommendations designed to help revitalize the securitization and structured credit markets, and bolster investor and broader public confidence in those markets.
The main goal of the initiative involves improving the operation and function of these markets in ways that enhance market discipline and transparency, while preserving the essential role that securitization plays in funding consumer and business credit needs.
In developing its recommendations, the group will consult with participants and regulators, legislators and policymakers worldwide.
The group will also leverage extensive research and industry dialogue in order to arrive at recommendations with an intended global impact, including an implementation roadmap. The group plans to conduct in-depth interviews of senior business leaders and a survey of securitization market participants worldwide.
The newly formed entity is a response to the presidents working group on financial markets recommendation to establish a private-sector group through which vital industry best practices, including those related to disclosure, can be formulated.