Lehman Brothers's collapse has set back the recovery in European ABCP, as it gave the already jittery investor base more reason to stay away.

"The ABCP market had been one of the first to start to recover from the subprime crisis," said Jean-David Cirotteau, a securitization analyst at Societe Generale. "In May 2008, volumes had stabilized at around $740 billion outstanding on a seasonally-adjusted basis. Although spreads remained wide, volumes had started to bottom out this summer."

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