The Securities and Exchange Commission’s update to Regulation AB, commonly referred to as Regulation AB II, may not prompt issuers to change whether they sell asset-backed securities in the public market or the private market.
However, with the SEC electing not to extend the public market disclosure and reporting regime to the Rule 144A market as part of its reforms, issuers may consider more 144A transactions to avoid the potential costs to comply with Reg AB II.
“Even under the current paradigm, nobody wants to do a public deal,” said Richard Simonds, partner in Alston & Bird’s Finance Group.
However, with the SEC electing not to extend the public market disclosure and reporting regime to the Rule 144A market as part of its reforms, issuers may consider more 144A transactions to avoid the potential costs to comply with Reg AB II.
“Even under the current paradigm, nobody wants to do a public deal,” said Richard Simonds, partner in Alston & Bird’s Finance Group.