The SEC recently released a final rule concerning the process by which rating agencies rate structured finance products without taking action with respect to the remainder of its proposals, which would have limited issuance of asset-backed securities.

The court's decision in R&R Capital LLC indicates that sponsors of limited liability companies that feature in securitization transactions may wish to include restrictions on the ability to put such companies into bankruptcy.

The proposed rules would remove the ratings requirements for Form S-3 shelf registrations of such securities and limit the offering of such securities to "qualified institutional buyers;" the SEC will accept comments for 90 days.

The volume of securitization of equipment leases is expected to increase in 2005 due to its flexibility and usefulness as a corporate financing tool.