Given the uncertain economic environment, the potential market-altering impact of the Financial Accounting Standards Board's (FASB) exposure draft on consolidation of special purpose entities (SPEs), and several notable corporate downgrades and defaults, it is not surprising that ABCP outstandings have been trimmed by $45 billion, from a record high of $745.3 billion as of year-end 2001 to $700.9 billion as of July 31, 2002. As discussed below, the second half of 2002 may prove equally challenging to a market striving to overcome the hurdles laid out by FASB and other regulatory bodies, while weathering the continued after effects of recent corporate and accounting scandals.

Capital Requirements Enhanced

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.