Fitch: U.S. ABCP To Eclipse $1.3T The Non-Traditional Way in 2007.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 -- The U.S. 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 sector will receive an increased boost from more non-traditional market players looking to jump on the bandwagon as the market speeds towards $1.3 trillion in issuance in 2007, 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. in a special report. "ABCP structures from non-traditional entities were welcomed by market participants with open arms in 2006 and Fitch expects more of the same this year," said Managing Director and ABCP group head Michael Dean. "In addition to hedge funds becoming more active, Fitch expects increased activity from SIVs, SIV SIV simian immunodeficiency virus. Lite's, CDO- and repo-related conduits, and market value structures as the market continues to evolve." 2007 is not without its legal challenges for U.S. ABCP as industry regulators continue to keep market participants in a holding pattern from the interpretation of Basel II. "Basel II will clearly have an effect on the ABCP market, primarily with respect to liquidity facilities, making vehicles with little or no external liquidity support such as market value extendibles more attractive from a capital perspective," said Dean. Another issue likely to remain hotly debated this year is the treatment of asset-backed extendible notes (ABENs) in money market funds. Fitch published its current views on this topic in a separate report published November of last year ('Criteria for Treatment of Asset-Backed Extendible Notes in Rated Money Market Funds'), saying that treatment of ABENs as liquid is acceptable as long as the security is not in extension or does not otherwise qualify as illiquid Illiquid An asset or security that cannot be converted into cash very quickly (or near prevailing market prices). Notes: A house is a good example of an illiquid asset. See also: Cash, Liquidity Illiquid In the context of finance. . 'Global Asset-Backed Commercial Paper: 2006 Review and 2007 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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