ABCP outstandings throughout North America continue to decline as both the supply of and demand for paper has weakened. While conduits with non-traditional structures or those financing out-of-favor asset portfolios have exited the space, the remaining market players continue to cleanse unfavorable asset types from their portfolios and terminated non-core banking relationships.

Investors are increasingly migrating back to traditional multi-seller ABCP programs sponsored by highly-rated financial institutions as credit quality continues to improve. What may also help with new ABCP issuance is that the Straight-A Funding program has ramped up significantly in recent months and now exceeds US$30 billion.

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