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Article: Go with the flow; Asset-backed securities.(The asset-backed securities market is under threat)(Brief Article)(Statistical Data Included)
- Article from:
- The Economist (US)
- Article date:
- September 21, 2002
CopyrightCOPYRIGHT 2002 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Fall-out from financial scandal threatens a crucial debt market
THE collateral damage from America's campaign against corporate corruption is still spreading. A new source of concern is "The Employee Abuse Prevention Act of 2002", a virtuous-sounding bill bouncing around Congress that could undermine the legal foundation of the trillion-dollar asset-backed securities market. Asset-backed finance, for all its flaws, plays a huge role in reducing the borrowing costs of American corporations, and of the average citizen too.
The most damaging changes sound well-intended and innocuous. Under the bill, sponsored by a consortium of Democrats led by Senator Dick ...