Squashing Global Securitization

The Basel Committee last week released the dozens of comments received on the fundamental rewrite proposed late last year for the capital standards applied to the securitization tranches banks retain or in which they invest. The comments from the industry are essentially a loud howl, reinforcing the analysis we provided last year concluding that the Basel standards would, if finalized, cast a dark cloud on all but the simplest private RMBS guaranteed by the highest-quality providers of credit enhancement.

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