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

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