Intense 3Q, No Slowdown in 4Q

Asset-backed commercial paper outstandings1 for the third quarter of 1999 rose to a new high of $486 billion, up 12.5% from $432 billion at the end of the second quarter. The intense pace of growth in the third quarter was attributable primarily to market participants' expectations that investor appetite for ABCP in the fourth quarter would be tempered as a result of increased money market redemptions and other cash requirements associated with Y2K-related precautionary measures. Sixteen new conduits were rated in the third quarter, a figure roughly in line with the average number of conduits established per quarter over the previous eight quarters.

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