Legislation and litigation

Legislation and litigation both revolve around the law and legal procedures that can impact the structured credit and asset-backed securities, or ABS, markets.
Legislation refers to statutory law that has been enacted by a legislature or other governing body of a particular country or jurisdiction and sets the broad framework within which a structured credit or ABS deal can be put together and offered to investors. English law and New York law remain the most common legislative frameworks used. Litigation means to carry on a legal contest through the law courts, where a plaintiff sues a defendant before a judge, where the plaintiff believes they have a case for recompense for wrongdoing by the defendant. In the structured credit and ABS markets, the plaintiff can often be an investor or group of investors � or less often a regulator � suing a defendant such as a manager, issuer or trader � either as an individual or as an institution, such as a bank � of structured credit or ABS products.