In the last few years private asset-backed transactions have become a rare animal, thanks in part to a commercial paper market attracting issuance that in the past would have gone the term route. But now forces are gathering - both economic and regulatory - that may presage an increase in private ABS issuance.

For starters, banks, frequent conduit program sponsors, have been stung by a few bad loans in their ABCP conduits and have begun tightening up on what goes into those conduits. Generally, sponsors are offering less favorable rates than in the past, while at the same time low interest rates are making the term market increasingly attractive.

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