Providing public deal-like disclosures on private placements? Issuers retaining a 5% stake in offerings issued from securities shelves? Requiring issuers to provide loan-level data regularly, even in the private market, and for asset classes where such detailed data has never been available?
All that and more. The Securities and Exchange Commission's (SEC) 667-page proposal to amend Regulation AB, affecting the ABS market, aims to shine a bright light on what has been a murky and, at times, very dark market in terms of information about offerings' underlying assets. And by requiring issuers to disclose much more information, the agency seeks to place more of the analysis burden on the shoulders of investors, who all too often have relied on the credit rating agencies' ratings instead of delving into the numbers themselves.