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Mortgages Get Metaphorical as the Securitization Industry Takes Aim at New Rules

Europe's ABS industry is developing a new language to explain its discontents with rules governing the notes.
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Photographer: Simon Dawson/Bloomberg

With their "waterfall payments," "credit enhancements," and "X notes," asset-backed securities (ABS) can be complicated.

Securitization bankers in the runup to the 2008 financial crisis often took comfort in the technical terminology and alphabet soup of acronyms that characterized the business of repackaging loans and other assets into salable bonds. Now they're reverting to much more accessible wording in their efforts to fight back against new rules designed to make the industry safer.