Snow in the Northeast and unusually heavy winds in Las Vegas did not affect the first day turnout at the American Securitization Forum’s 2012 conference at the Aria Resort and Casino. Attendance hit the high end of expectations and the mood on the ground was all about getting back to business and moving forward, attendees said. Many noted that they had completely booked themselves with client meetings. “It’s a much more business-oriented atmosphere than the last time the conference was held in Vegas,” said John Hwang, attorney at Allen & Overy.
It seems clear everyone is well aware of the hurdles that remain, as securitization professionals grapple with the market impact of global economic issues and another year’s worth of regulatory uncertainty. At a crowded featured address, Congressman Ed Royce (R—Calif.), didn’t try to sugarcoat the regulatory landscape. “We’re through about 13% in terms of Dodd-Frank implementation,” he said, as the audience groaned. Royce, an early dissenter to Dodd-Frank, didn’t provide much comfort as to the potential effects of the regulation. “We’re dealing with a world that’s a mouse click away from moving capital to Britain, if we’re not careful,” he said.
One official at a Midwest investment house told SI he expected a toned down atmosphere . “Both the continued performance of the mortgage sector and the consistent shift of players on Wall Street will dampen the mood somewhat,” he said. An executive at a major investment bank agreed. “We’re not going to have a party,” he said. “We want to keep a low profile, especially while people are still out there losing their jobs.”
There should be a decent-size crowd to keep a low profile in. The ASF recorded 4,482 pre-registered conference-goers, with another 300 to 600 expected to register on-site, according to ASF executive director Tom Deutsch. That translates to an uptick of around 400 in attendance from last year’s conference in Orlando, Fla.
Many attendees predicted a large post-conference bump in issuance, with one issuer even saying it could double or triple the over $3 billion in new deals seen in just the week prior to the conference.
The market can expect overall growth this year, according to Hwang, as issuers get a feel for investor appetite. “Investors have been trying to get the message out that they want more auto and credit card issuances, and my feeling is that the issuers are getting that message,” he said. London-based attorney Sally Onions added: “Investors are looking for well-known names to issue on a repeat basis.” She noted the cost to investors of doing the due diligence on untried issuers.
Onions also noted an increase in conference attendance by non-U.S. players, and especially European, issuers hungry to tap the U.S. market. “They’re looking outside of Europe to the States, particularly in the credit card and [residential mortgage-backed securities] space,” she said.