Participants in the $1.2 trillion (€866bn) global asset-backed commercial paper sector are confident that investors have regained some of their focus this week after a series of shocks that brought the market to a halt over summer, but they have conceded there is still work to be done to restore confidence and stability to the sector.
Two debt market trade bodies, the American Securitisation Forum and its European counterpart, the European Securitisation Forum said in a joint statement following a conference call with ABCP market participants yesterday: “Participants agreed that there are signs this week of some improved flows.”
They added that market participants reported “the beginning of a return to proper focus on the strong credit fundamentals and structural safeguards of ABCP”.
The two lobby groups, which helped arrange the conference call that marked the first time asset-backed commercial paper market participants have collectively looked into ways to ease the credit crisis since it began in the first half of the year, added further discussions are likely.
They are hosting a summit to discuss the state of the securitisation industry on September 19 as part of their efforts to foster dialogue on ways market participants can overcome the current uncertainty and help restore “confidence and stability to these critically important markets”.
Source: efinancialnews.com
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Nice post on ABCP market
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