Asset-Backed Commercial Paper

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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.
References in periodicals archive ?
Global Banking News-October 6, 2011--Sallie Mae completes issue of asset backed commercial paper facility(C)2011 ENPublishing - http://www.
A credit guarantee for 5% of the value of the assets financed by the program is issued by the bank which sponsors the asset backed commercial paper program.
Canadian securities regulators have fined six banks and brokers for their part in selling Asset Backed Commercial Paper (ABCP).