ABS Reports, part of the Jersey-based Mourant Group, is to offer an online information service for as...
The company hopes to encourage the development of a secondary market in an area where accurate information useful for product comparison has often been hard to find.
Subscribers to the site will receive monthly updated information on the underlying receivables that are being securitised, information on the securities being issued by the Special Purpose Vehicle - especially as regards the payment priorities of the SPV - and advice on the structure of the transaction.
Although costs are yet to be decided, companies issuing ABSs and MBSs will pay between £5,000 and £10,000 to have their products listed.
Subscribers to the site will be paying somewhat less to access it.
The website, www.absreports.com, will also offer to put links from the products to the websites of both the agencies that have rated them and the originators. This is to allow investors to gather more background information on the listed products.
ABS Reports will eventually provide a data filtration service to allow users to cut out irrelevant information and to focus on their primary areas of interest.
The service, which is essentially a database of asset-backed securities with a web-based front-end, is now being demonstrated to investors and originators and is expected to be online in autumn of this year.
One of the primary forces behind the project is the lack of organised information. Individual issuers of these products decide how much information they wish to release and its format. It is therefore difficult to make an informed comparison between the different securities.
The hope is that providers who do not provide this level of detail will lose favour among investors and so eventually the whole sector will be made more transparent, supporting a thriving secondary market.
ABS's research indicates that this service should lead not only to more finely honed pricing, but will also encourage a broader client base for these types of products.
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