Fitch: RMBS Originators May Help Breathe Life to U.S. ABCP Issuance.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- New participants may help the U.S. asset-backed commercial paper market begin to shake the doldrums and flex some issuance muscle, according to Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Amid the general sluggishness of the first three quarters of 2004, various new single seller ABCP ABCP Asset-Backed Commercial Paper ABCP Associação Brasileira de Cimento Portland (Brazil) ABCP Associação Brasileira de Ciência Política ABCP American Board of Cardiovascular Perfusion ABCP Associate Business Continuity Planner programs have come to market, among them a callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. , extendable, CP, and medium term note program, HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) Real Estate Funding (USA) Trust, a residential mortgage loan warehouse sponsored by Household Financial Corp.. 'The HSBC program is emblematic of a growing number of conduits sponsored by residential mortgage originators who are tapping into the ABCP market to meet their funding needs,' said Darryl Osojnak, Senior Director, Fitch Ratings. 'Several similar programs are expected to hit the market during the fourth quarter of this year.' ABCP outstandings, despite the improved economy and credit cycle, remain stagnant due in part to regulations such as FIN 46R, Basel II and the U.S. bank regulators final rule on capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for ABCP liquidity facilities, as Fitch reported a 4.5% decline in outstandings through Sept. 30, 2004 from the year-end 2003. Fitch projects a cautiously optimistic $710 billion in year-end ABCP outstandings, though 'with numerous mixed signals in the market today, it is still anyone's guess where year-end ABCP outstandings will be,' said Osojnak. 'ABCP Trends & Advances', Fitch's semi-annual look at topical issues and trends in today's ABCP market, is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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