Friday, 9 November 2007

Decline in ABCP market reaccelerates

After slowing almost to a halt 2 weeks ago the decline in the Asset Backed Commercial Paper market has reaccelerated in recent weeks. In the latest week to November 7th ABCP declined $29.5 billion. The total amount of ABCP that has been wiped out of existence since early August totals $338 billion or a decline of almost 29%.

Last month rumours circulated that much of the SIV related paper was coming due in Novemeber which spawned the Super SIV idea backed by Hank containment Paulson. Whilst Citigroup's SIV's were considered not under threat it appears other SIV's may not have been so lucky.