NEW YORK - ABCP volume has topped the $1 trillion mark, a welcome update at the Asset Securitization Forum's annual meeting here last week. Such a showing, however, means that competition is increasingly fierce for investors and dealers. Also, as newer ABCP structuring techniques, such as extendible notes and structured investment vehicles (SIVs) continue to boost the market's volumes, investors will have to dedicate much more time understanding the deals and the managers who run them.
Fierce competition, particularly in the multiseller sector, has ushered in diverse models and new entrants, and in some cases for the better, said Eric Wise, a managing director at the Royal Bank of Canada. The lack of layering among deals, however, is a growing concern at the bank, he added.