Assured Guaranty Corp. is providing a surety bond guaranty of up to $1 billion for the benefit of Jupiter Securitization Co., a multi-seller ABCP conduit that is administered by JPMorgan Chase.
The guaranty will benefit Jupiters commercial paper investors by providing a portion of Jupiters program-wide credit enhancement. Jupiter, which was established in 1990, specializes in providing financing to companies in traditional asset classes, such as credit cards, trade receivables, residential mortgages, auto loans and financing leases and equipment loans and leases.
This is the second JPMorgan-administered ABCP conduit program to which Assured has provided credit enhancement in 2008. In July 2008, Assured provided $1.25 billion in surety bond protection to the Park Avenue Receivables Co. commercial paper program.
Assured remains strongly committed to the asset-backed commercial paper market, which is a cost-effective means for providing consumers and companies with access to financing for their auto purchases, commercial receivables and other essential financing that is crucial to the long-term strength of our economy, said Michael Schozer, president of Assured Guaranty Corp. We are pleased to have been able to work on this transaction with JPMorgan, which has more than twenty years of experience in this market. Our surety bond will help Jupiter continue to provide essential financing capacity for many consumers and small and mid-sized corporations.