NEW YORK - Although an occasional annoyance to investors, extendible ABCP is the inescapable future of the conduit market, according to panelists speaking at last week's American Securitization Forum Sunset Seminar dedicated to the topic (see Observation p 18-19). Recent technological advances offering significant economic benefits to issuers are seen spreading to new sectors, regardless of whether investors feel they are adequately compensated for a risk they consider too great for the reward.

"Still in its infancy," despite its rapid growth (extendible programs currently make up 11.5% of total ABCP), extendible technology is currently being incorporated in new asset classes and geographic regions. Panelists expect "several new programs from Europe," and Moody's Investors Service Senior Vice President Everett Rutan reported discussing its expansion into the student-loan sector.

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