SEC allows asset-backed bond sales to continue without ratings

11/24/2010 | Wall Street Journal, The

The Securities and Exchange Commission has extended a waiver allowing sellers of asset-backed bonds to bring them to the market without putting ratings in their offering documents. Earlier this year, the major credit rating agencies refused to agree to stand by the accuracy of their ratings for such bonds, a requirement implemented by the Dodd-Frank Act. The market for asset-backed bonds froze up, and the SEC solved the problem by allowing the debt to be marketed without ratings.

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