Innovation in asset-backed commercial paper continues to be a story this year. While a small handful of conduits have been structured to fund mortgage receivables, Centex Corp. recently established Harwood Street Funding II, the first all subprime mortgage ABCP conduit, to fund its originations between term securitizations.

The structure allows Centex cheaper funds than would a warehouse line of credit, which mortgage finance companies traditionally use to store receivables.

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