S&P Global Ratings published a release entitled, "ABCP Highlights from the 2018 SFIG Vegas Conference," which says, "We recently attended the Structured Finance Industry Group (SFIG) conference in Las Vegas (Feb 25–28) where we co-hosted an ABS/ABCP investor round table, spoke with market participants and attended panels and lectures on a wide array of topics." Their Key Take-Aways include: "ABCP will remain a relevant product for years to come because of its significance in funding the 'Real Economy'. ABCP has reshaped itself in the years following the financial crisis, overcoming major regulatory hurdles including Risk Retention, Money Market reforms, and Basel III. ABCP sponsors have satisfied the Risk Retention regulatory requirements, typically by purchasing 5% of their conduits' outstanding ABCP. A recent court ruling that exempts CLOs from holding 5% capital for every transaction could potentially extend to ABCP, freeing some sponsors from the capital burden." They add, "Due to Money Market reforms, the ABCP investor base has shifted dramatically from the prime institutional funds to non-2a7 funds, such as private liquidity and government funds.... Overall lending has evolved substantially, with issuers becoming more comfortable with existing regulation and technology contributing to the proliferation of new market entrants including FinTech companies and global alternative asset managers whose appetite for shorter term products, such as ABCP, has grown considerably. Repatriation of money in the wake of tax reform could give a temporary lift to the ABCP market as corporate treasurers, with new cash on hand, explore available short-term investment opportunities."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2025 2024 2023
January December December
November November
October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2022 2021 2020
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2019 2018 2017
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2016 2015 2014
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2013 2012 2011
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2010 2009 2008
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2007 2006
December December
November November
October October
September September
August
July
June
May
April
March
February
January