With over 1300 transactions in its database, EDW offers solutions for issuers, originators and SSPEs to comply with performance requirements relating to STS Transactions.
EDW can perform on-demand SQL queries to extract historical performance data from its database across asset classes for a period of at least five years. The performance data includes historical arrears and defaults for exposures similar to those being securitised.
According to Article 22 of the Securitisation Regulation 2017/2402 (EU), “the originator and the sponsor shall make available data on static and dynamic historical default and loss performance, such as delinquency and default data, for substantially similar exposures to those being securitised, and the sources of those data and the basis for claiming similarity, to potential investors before pricing. Those data shall cover a period of at least five years.”
In order to comply with the transparency requirements for STS transactions under Article 22 of the Securitisation Regulation 2017/2402 (EU), “a sample of the underlying exposures shall be subject to external verification prior to issuance of the securities resulting from the securitisation by an appropriate and independent party, including verification that the data disclosed in respect of the underlying exposures is accurate.”
