Fitch: U.S. ABCP On Uphill Climb, Though Tepid Economy Slows the Ascent.Business Editors NEW YORK--(BUSINESS WIRE)--April 1, 2004 While 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. expects an uptick in 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 ) outstandings in 2004, a tepid economy and lingering uncertainties presented by the revised version Revised Version n. A British and American revision of the King James Version of the Bible, completed in 1885. Revised Version Noun of Financial Interpretation No. 46 (FIN46R) continue to inhibit market growth, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recently published report by Fitch Ratings that details the agency's Outlook for the U.S. ABCP sector. While ABCP outstandings slipped during the first two months of 2004, March showed signs of a rebound as outstandings climbed to $715 billion. Fitch expects to see ABCP outstandings increase to approximately $735 billion by year's end. One factor that may aid in the growth of the ABCP market is the advent of CDO-backed extendible or 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. note programs, which emerged last year and helped to offset some of the negative effects that FIN46 and a stagnant economy had on the ABCP sector. These structures accomplish several things such as reducing the need for traditional liquidity and providing a more economic way to fund senior CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the tranches in the currently low interest rate environment. 'With several currently in the pipeline, Fitch anticipates seeing more of these extendible structures during 2004 as they continue to gain market acceptance and possibly offer more attractive spreads,' said Deborah Seife, Managing Director, Fitch Ratings. 'Asset-Backed Commercial Paper: 2003 Review and 2004 Outlook' is available on the Fitch Ratings web site at 'www.fitchratings.com'. |
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