Reply #46: Let them, it's their last resort

[ProSense]

and an attempt to sway regulators.

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Meanwhile, solutions include a move by issuers to the private/144A market, where public filings with the SEC are not required, Barclays analysts said.

However, Bank of America Merrill Lynch analysts said in a report this week that limiting ABS issuers to the 144A market could reduce the options available to many investors. With a substantial portion of consumer and commercial ABS issuance stemming from the public market, many investors can not participate in the 144A market and it would therefore not be a long-term solution, analysts noted.

Additionally, a shift to the 144A market could also have the potential of increasing funding costs to issuers — which would eventually be passed on to consumers. Some issuers may choose to reduce origination volumes if faced with rising funding costs, BofA analysts observed.

Alternatively, said Barclays analysts, the SEC could also collaborate with the industry to alleviate the unintended results of the repeal. Analysts expect the former to take place initially, but the latter to be the eventual long-term result.

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Idle threats.