When the first extendable ABCP programs began drifting into the multi-seller segment of the market in 2001, issuers attributed it to a liquidity crisis. However, some investors scoff at the notion that the advent of extendable paper has been in response to investor demand. Instead, they claim, the technology is used primarily as a way of bypassing bank liquidity and improving the profitability of the conduits.

A panel of four investors sat down with ASR's Sarah Mulholland to air their thoughts on the issue; Barry Weiss, Vice president/portfolio manager, Oppenheimer Funds, Michael Egizio, Senior analyst, taxable debt, Northern Trust Global Investments, Natalie Metz, Vice president/senior investment analyst, Federated Investment Management Company, Matt Grimes, Managing Director, fixed income credit research,Wells Capital Management

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