Friday, 4 January 2008

ABCP market gains $26.2 billion in latest week

The market for Asset Backed Commercial Paper broke a 20 week losing streak in the week to January 2nd as the amount of ABCP outstanding increased by $26.2 billion. Naturally the bottom callers have come out and announced that the ABCP market has stabiized. From Bloomberg:

"The market is stabilizing," said Neal Neilinger, managing director and co-founder at NSM Capital Management LLC in Greenwich, Connecticut. "I don't think we'll see another drop, unless there's another headline that hits."

OK so a 1 week hiatus in a 20 week downtrend signals stabilization. No doubt this quote will be revisited this quote in the weeks to come.