Key Saudi Rule Change to Open Up ABS Market ‘Bigger Than Spain’
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Saudi Arabia is proposing changes that will encourage the issuance of asset-backed securities and kick start a market that participants say has the potential to be larger than many European countries.
The kingdom’s Capital Market Authority invited comment on revisions to rules governing special purpose entities, with submissions due by April 29. The goal is to promote the use of debt instruments “by improving their governance, developing their procedures, and enabling securitization transactions,” a draft of the proposals shows.