Fitch: U.S. ABCP May Eclipse $1T, & Basel/US Capital Rules Concerns in 2006.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 -- Concerns about the regulatory climate regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. , namely Basel II and current U.S. risk-based capital rules, do not appear to be impeding the upward trajectory of U.S. asset-backed commercial paper (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 ) issuance in 2006, and in fact issuance may reach an unprecedented $1 trillion by years-end, according to a report by Fitch Ratings. With over $926 billion in outstandings by the end of last year, U.S. ABCP outstandings reached their highest levels since the market's inception and accounted for over half (56.1%) of total CP outstandings for 2005. As far as trends, more new players will likely enter the arena in 2006 to help continue the upward trend in growth, and increasingly, the structure of ABCP liquidity facilities for US bank-sponsored programs may have a decidedly different look, according to Debbie Seife, Managing Director, Fitch Ratings. 'More non-bank participants such as KKR KKR Korringa-Kohn-Rostoker (method) KKR Kohlberg, Kravis & Roberts & Co. KKR Kalkara (postal locality, Malta) KKR Kramers-Kronig Relations KKR Komarappa Gounder Ramalingam (hospital in India) Financial will tap into the ABCP market as a funding source,' said Seife. 'Additionally, Fitch expects to see more CDO-related, repo-related and multiseller extendible note programs take up a larger piece of the total issuance pie this year.' 'Global Asset-Backed Commercial Paper: 2005 Review and 2006 Outlook' is available on the Fitch Ratings web site at www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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