There has been a lack of consistent reporting standards in structured finance and according to investors it is time the problems were addressed. At last week's Surveillance and Investor Reporting Conference held by the Strategic Research Institute, investors from the industry expressed grievances with issuers in the market.
The problems include over leveraged borrowers, insufficient data disclosure, unsatisfactory analysis of data that is disclosed, and inaccuracy of information. Historically there has been poor contingency planning within trusts, high loan and bond prices; negative experiences from previous bankruptcies and fraud situations. Trustee accountability and concerns over lack of performance data over-extended investment managers and concentration of risk in a few issuers/servicers.