In This Issue:

- EU Risk Retention Undertakings in U.S. General Equipment ABS: Evolving Market Practice

- PDP Financing: An Overview

- Tax Reform’s Impact on Transportation Finance Transactions

EU Risk Retention Undertakings in U.S. General Equipment ABS: Evolving Market Practice.

For companies seeking to finance general equipment assets via asset backed securitization (ABS) instruments, risk retention has become an important consideration. In response to the latest financial crisis, both the U.S. and the EU adopted regulations mandating that ABS issuers retain credit risk in such transactions. U.S. companies desiring to market ABS instruments in the EU must be cognizant of the EU risk retention rules, including certain key differences from the U.S. risk retention regime. This article discusses certain of these differences and the evolution of compliance approaches used in the market to date.