In light of major losses suffered by asset-backed security
investors during the 2008 financial crisis, the SEC and Congress took steps to protect investors and enhance disclosure of critical financial information.
Worldwide's offer for CFS and the closing of the sale are subject to and conditioned upon the matters set forth in the asset purchase agreement including the approval of the new servicing contracts by the asset-backed security
holders, who are creditors of the trusts.
Moreover, investors may be susceptible to concentrations of risks across various asset-backed security
issues through overexposure to an organization performing several roles in the securitization process or as a result of geographic concentrations within the pool of assets providing the cash flows for an individual issue.
Griffin will report to Stephen Bischoff, Head of the Mortgage, Asset-Backed Security
and Agency Groups.
The CBO is a form of asset-backed security
which pools bonds of lower quality and issues multiple tranches of securities.