Friday, 21 December 2007

ABCP Market Loses $27.5 Billion in Latest Week

The great disappearing act involving Asset Backed Commercial Paper was particularly impressive this week as another $27.5 billion vanished. That brings the grand total of ABCP to disappear since August to $432 billion or a decline of 36%.

Also of interest was the $28.5 billion of Financial Paper that got wiped away. Financial paper outstanding had been steadily growing since bottoming out in late September. Maybe just a one off. No ABCP update next week as I think (not sure) the Fed takes a rest over Christmas.