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jurisdictions around the world, have instituted new regulations on asset-backed securities (“ABS”). Such regulations have been part … previously lightly regulated areas. While their asset‐backed securitization (“securitization”) regulations have had some positive … evident in the primary areas of securitization regulation thus far, the so‐called “skin in the game” regulations and …
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This paper applies the theory of structured finance to the regulation of asset backed securities. We find the current regulation in Europe (Article 405 of the CRR) and the US (Section D of Dodd-Frank Act) to be severely flawed with respect to its key intention: the imposition of a strict loss...
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