ABCP market decline slows

The Asset Backed Commercial Paper market continued to decline however at the slowest rate since the purge began in early August. ABCP fell by $4.6 billion in the week ending October 24th.

The biggest threat to continued falls in the ABCP market is the uncertainty of SIV's ability to roll over their paper as highlighted by recent events at Cheyne Capital Management Ltd, IKB Deutsche Industriebank AG and the latest casualty Axon Financial Funding Ltd.