Asset-backed commercial paper

Multiseller securitization conduits typically issue short term commercial paper or medium term notes in the capital markets to fund their purchases of receivables from originators. See, e.g.. Corporate Asset Funding Co., Inc., Fitch Investors Service, Structured Finance, New Issue, June 15,1992, at 81 (discussing Corporate Asset Funding Co., Inc. s 7 billion commercial paper and medium term note program) Mark H. Adelson, Asset-Backed Commercial Paper Understanding the Risks, Moody s Investors Service, Structured Finance, Special Report, Apr. 1993. 

I remember the first time I met Moorad Choudhry—a man, it seems, who is very well known in the banking community. It was late evening on a rainy day in London at the Dorchester Hotel, where Moody s Investors Service was hosting a cocktail party in connection with its annual asset-backed commercial paper conference. I was invited by my law firm to mingle with bankers, raters, accountants, and other lawyers on a day of panel workshops covering the short-term money markets. 

But first, you should know what types of bonds are available. Among the types of bonds you can choose from are U.S. government securities, municipal bonds, corporate bonds, mortgage and asset-backed securities, federal agency securities and foreign government bonds. There are also many short-maturity options such as Treasury bills, bank certificates of deposit and commercial paper. 

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