Regulation AB / Reg AB II
Asset-Backed Securities glossary · Asset Backed Securities
Definition
SEC disclosure regime for public ABS offerings, requiring loan-level data, asset-class-specific disclosures, and ongoing reporting.
Regulation AB / Reg AB II in plain English
When a company sells bonds backed by a bundle of loans to the public, U.S. regulators (the SEC) require it to open the books so investors aren't buying blind. Regulation AB — updated to Reg AB II — is that rulebook: it spells out exactly what must be disclosed, including detailed data on the individual loans in the pool, information tailored to the type of loans (mortgages get different rules than auto loans), and regular updates for as long as the bonds are alive. Think of it as a mandatory, standardized nutrition label plus ongoing report cards for these investments, so buyers can actually see what they're getting.
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