The proposed SEC changes should generally help securitised products, but the focus on transparency in the ratings process should particularly highlight the history of stable products such as CMBS and consumer ABS, say Citi analysts in a recent research report. Providing more transparency - not just on the rating process but also on the structures, reporting, and surveillance of these products - can only help investors regain confidence in the products and recognise their value, the analysts report. 

Having looked at the transition matrixes of the different securitised products that the agencies provide, they see very stable matrixes for CMBS and consumer debt ABS and less stable matrixes for subprime and structured finance CDO products. While there is definitely much pressure from regulators and the market to do something about the ratings, it is not completely clear whether there was indeed a stark failure of the ratings agencies in rating securitised products, they add.