Timing on the Treasury Department's issuance of new regulations concerning financial asset securitization investment trusts (FASITs) has firmed up. The proposed rules will be issued no later than September, according to a source. The new rules will come from the Internal Revenue Service, under the jurisdiction of the Treasury, and look to clear a more negotiable path for issuers wanting to securitize using this new but rarely used structure.

A sizable market for the vehicle has already begun to form, as clients are clogging the phone lines in the tax department of one major asset-backed law firm, said a member of that firm, as less onerous access to the FASIT structure nears.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.