Compared to year 2000, when the asset-backed commercial paper market celebrated the innovative restructuring of Eureka Securitization, there was little in the way of "novel" structures for most of this year, although a new wave of innovation is anticipated.

As preview of what's to come, this month is seeing two ABCP conduits structured largely to act as swap counterparties, securing portfolios of assets so that the banking entities can receive favorable regulatory treatment. Last week's launch of Hudson-American Realty Protection (HARP) by Bayerische Hypo-Und Veriensbank (HVB), and another similar transaction scheduled to launch this week, are examples of this new trend taking shape, said Sam Pilcer, head of ABCP at Moody's Investors Service.

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