The European asset-backed commercial paper market might see a return to stable growth during the remainder of 2010 after three years of declining issuance, according to Fitch Ratings.
"Although ABCP transactions have shown a decline to date, Fitch believes the market is likely to revert to stable growth during the remainder of the year," said Emma-Jane Fulcher, a director at Fitch's European structured finance ABCP group. "A return to growth would be driven by increased investor enquiry and the restructuring of ABCP programs."
She added that the rating agency's credit outlook for such conduits is stable and largely driven by the structure and tested mechanics of the programs, the performance of the underlying deals and in many cases the full liquidity support provided to the conduits.
