September 8, 2011
I'm very surprised that the SEC would decide to conduct this review given the current substantial weakness in the US economy and especially in the housing sector. Investors in mortgage backed securities have already suffered substantial losses and the hint that further losses would be possible as a result of regulatory changes would seem a certain way to keep them away.
As a retired person, managing his own "defined contribution" retirement portfolio, some of the asset-backed issuers have offered a needed return.
As a Canadian, I am already facing the risk of exchange rate losses and so as a result of this review I have already reduced my investments in these companies by over fifty percent. I will likely completely divest prior to the end of the comment period due to the uncertainty this review has caused.
If the SEC wishes to keep the private sector and investors involved in this industry I would suggest that it refrain from making any changes in the treatment of asset-backed issuers and confirm that there is regulatory stability for investment.
Thank you,