NordLB has structured the capability to issue ECP into its Hannover Funding ABCP conduit. Hannover can issue in both euro and sterling commercial paper, and intends to do so as a way to mitigate the use of a currency swap when originating non-dollar assets. Hannover's back-office administration is handled by Global Securitization Services, which is able to issue the CP through its London office. NordLB has yet to originate its first non-dollar asset, but expects this to happen imminently.
Two expected loss tranches have run into trouble, a panelist said at last week's ABCP conference. Apparently, the winding down of conduits from CIBC World Markets has negatively impacted an expected loss issuance associated with either Asset Securitization Capital Company or SPARC. The other negatively impacted expected loss tranche was associated with a Parmalat trade receivables deal, though the conduit was not named.