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Sunday, 9 April 2017

MIDEAST DEBT-Saudi readies debut dollar sukuk with U.S. risk disclosure | Reuters

MIDEAST DEBT-Saudi readies debut dollar sukuk with U.S. risk disclosure | Reuters:

"Saudi Arabia has included a disclosure on credit risk retention requirements, part of the U.S. Dodd-Frank Act, in the prospectus of a debut dollar sukuk which it is expected to issue this week and could total $10 billion. The disclosure to comply with the act, which the U.S. Congress introduced after the financial crisis to reduce risk-taking, has not been made for other sovereign sukuk issues. The U.S. retention rule was set to align the interests of issuers of asset backed securities (ABS) with those of ABS investors by asking the sponsor of an ABS securitisation to have "skin in the game" by retaining 5 percent of the credit risk associated with the securities it is issuing. "



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