The latest volume of The Investment Professional®, the quarterly magazine of the influential New York Society of Security Analysts, Inc. (NYSSA), features a review of Joe Tanega’s recent book “Securitisation Law: EU and US Disclosure Regulations.”
Securitizations accounted for half of the $5.7 trillion raised in the US credit markets in 2007, according to the American Securitization Forum. Today the world is a very different place. Over the last couple of years, the problems in the structured finance markets have served to manifest the many faults in monetary policy and regulatory bodies, as well as highlighting the folly of human avarice. Yet securitization remains one of the most powerful financial innovations of the last century. On a practical level, it has enabled more people to own homes, pursue educations, or run small businesses, and it improved the standard of living globally.
In his book, Joe sets out the relevant regulations that govern ABSs (asset-backed securities) in the US and the EU (with a focus on the United Kingdom and Ireland). He engages the reader in an up-to-date discussion of the transparency mechanism and provides checklists of disclosure items along with practical aids such as flow charts. ABS disclosure regulations governed by the US Regulation AB are compared to those in the EU Prospectus Directive and Prospectus Regulation. As the modern economy opens the door to financial innovations and new products and methods, investors must recognize the nonroutine ways in which the new markets operate. Disclosure is a key component in enhancing investors’ risk awareness. The value of complete, consistent, and truthful financial-transaction disclosures cannot be overestimated for both legal professionals and educated investors.
The full text of the book’s review can be accessed following the link: