Asset-Backed Bonds Said to Face Tougher SEC Disclosure Rules
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Sellers of bonds backed by mortgages and auto loans would have to give investors details including the borrowers’ income and credit scores under rules the U.S. Securities and Exchange Commission is poised to consider this week, according to two people briefed on the plan.
The SEC will vote Aug. 27 on the final rules, which were mandated by the Dodd-Frank Act after investors were burned by soured debt sold by Wall Street before the 2008 credit crisis. The biggest sellers of asset-backed securities include Bank of America Corp., JPMorgan Chase & Co., Deutsche Bank AG, Citigroup Inc. and Goldman Sachs Group Inc.