ABCP. Short-term investment that encompasses the use of a special purpose vehicle or conduit, which serves as the issuing party of commercial paper. The commercial paper is backed by physical assets such as homes, automobiles, or other forms of physical property. Similar to a Term Securities Lending Facility, ABCP's main purpose is to increase liquidity in financial markets. Asset backed commercial paper is similar to collateralized debt obligation (CDO) and is repackaged and sold to investors by banks or other financial institutions. For example, company A may sell some of its receivables to a financing institution and then the financing institution will repackage it and sell it to investors as ABCP.
Related information about asset backed commercial paper:
- Asset-backed commercial paper - Wikipedia, the free encyclopedia
Asset-backed commercial paper (ABCP) is a form of commercial paper that is collateralized by other financial assets. ABCP is typically a short-term instrument ...
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Nov 8, 2001 ... An asset-backed commercial paper (ABCP) program is composed of a bankruptcy-remote special purpose vehicle (SPV), or conduit, that ...
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- Asset-backed Commercial Paper - US Economy - About.com
Asset-backed Commercial Paper (ABCP) is short-term corporate debt that is backed by assets such as real estate, autos and other commercial assets.
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May 1, 2012 ... Asset-Backed Commercial Paper Money Market Mutual Fund ... to help MMMFs that held asset-backed commercial paper (ABCP) meet ...
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Feb 2, 2011 ... February 2011. Q. First, what is ABCP? A. ABCP is a short-term, senior-secured debt instrument collateralized by a variety of asset classes, ...
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May 2, 2012 ... Its amount outstanding is stable, but yields tell another story.