Retaining Risk Retention
The International Organization of Securities Commissions (IOSCO) has issued final global standards for key aspects of asset-backed securities reform, recommendations that will guide global and U.S. regulators as they build out new risk-retention and disclosure requirements for RMBS. The proposed standards were sold on risk retention and, unsurprisingly, the final guidelines are too, recommending as few exceptions as possible to requirements IOSCO endorses even as the detailed analytics in its paper parse through all the difficulties of setting risk-retention requirements without adverse consequences.
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