European ABCP has stabilized and will likely remain that way. It also has the potential for growth through product innovations,  Moody's Investors Service said.

"While we have not returned to the halcyon days before the credit crisis, the market has reached a new equilibrium, reflecting the fact that ABCP remains both an important source of funding for banks and their clients and a core product for investors," said Masako Oshima, a senior credit officer at Moody's.

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