As Latin American issuers search for easier and cheaper funding methods, the asset-backed commercial paper conduit market has erupted, becoming the preferred mechanism for issuance - and many market participants are unaware of its existence.

While term deals appear to be a rather lackluster market throughout Latin America, conduits seem to be somewhat of a well-kept secret in the trendy-type funding arena. "This form of financing has been around for many years, but we've seen its use for emerging markets increase significantly since the second half of last year," said Kevin Kime, director of structured finance ratings from Standard & Poor's.

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