Australia Regulator Plans ‘Simpler, Safer’ Securitization Market
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Australia’s banking regulator is working on securitization reforms that it says will make the nation’s market for such debt simpler, safer and more attractive to global investors.
The Australian Prudential Regulation Authority is preparing a discussion paper that it plans to publish early next year before adopting the new rules in 2014, Charles Littrell, executive general manager at APRA, said in a speech in Sydney today. Securitizations for funding purposes are proposed to have a senior, top-rated ‘A’ portion that can be traded and a ‘B’ class of notes held by the originating lender, he said.