Volume in the ABCP market has hovered steadily in the $725 billion range by the Federal Reserve's count, down from last November's $740 billion area. Most players don't see a whole lot of growth over the next month or so - contrary to the typical year-end push - but believe activity will increase notably in the new year.
The trend of single-seller mortgage loan conduits continues to be one of the primary areas of growth in the market. So far this year, Ameriquest Mortgage, New Century Financial and Countrywide Home Loans have established these programs, which serve as a cheaper alternative to traditional warehouse facilities used for funding between term securitizations. Several more of these structures are in the works, said rating agency officials and bank researchers. For example, last week JPMorgan Securities included a special write-up on mortgage-backed liquidity notes in its quarterly update on ABCP.