The ASF has lodged its position in relation to the Australian Treasury Proposals Paper G4-IRD central clearing mandate – February 2014 the industry’s desire to obtain certainty that securitisation swaps will be exempted from a clearing mandate. Without this, securitisation swaps will face margin and collateral requirements that they cannot meet due to their current structure and ratings requirements.
The Australian market was caught by surprise in February by Moody's Request for Comment on its assertion that material risk exists in relation to set-off rights where collateral has been securitised. A working group lead by Allen & Overy, Clayton Utz and King & Wood Mallesons researched the topic and drafted a robust and considered submission.
Full details and the application form can be found here:
The ASF has submitted a comment letter to the US regulators relating to the re-proposed rules for credit risk retention for securitisations issued to US investors. Our letter seeks to highlight differences between US and Australian residential mortgage underwriting practices and the potential negative impact the US credit retention rules may have on Australian RMBS issuers. Click here to read the letter. Please contact Chris Dalton if you wish to discuss this matter.