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Asset-Backed Commercial Paper

   Also found in: Acronyms 0.01 sec.
Asset-Backed Commercial Paper
A short-term debt security issued by a corporation that is collateralized by some asset. In general, asset-backed commercial paper is secured by accounts receivables or something similar. It carries less risk than other commercial paper, which is unsecured. It is a highly liquid investment and forms part of the money market.


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issuers of commercial paper through a special-purpose vehicle (SPV) that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers," said the Fed.
As reported by the Associated Press, "The Fed said it is creating a new entity to buy three-month unsecured and asset-backed commercial paper directly from eligible companies.
The Wall Street Journal, New York) The good news about Monday's announcement that a consortium of big banks is going to try to restore liquidity to the asset-backed commercial paper market with a $100 billion fund is that the effort seems to involve only private capital.
 
 
 
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