The FHFA suing many of the world's largest financial institutions over mortgage-backed securities is the last nail in the coffin for the Market Group's current implementation of the ECB's ABS data warehouse.
Simply put, the questions at the heart of the lawsuit are what did the financial institutions know and when did they know it with regards to the underlying loans.
These questions highlight why no investor, and this includes government agencies and central banks, is going to rely on loan performance information that is not as current as the information that Wall Street has. Wall Street has observable event performance information and that is what investors are going to require too.
These questions are also the last nail in the coffin for the Market Group's current implementation of the ECB's ABS data warehouse because it is focused on once-per-month data that no investor is going to want.
My firm holds a US patent on an ABS data warehouse providing observable event performance information. Since all ABS deals have a component that is aimed at US investors, anyone offering observable event performance information through an ABS data warehouse is going to need a license.
The Market Group is welcome to apply for a license.
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