The emerging markets of Latin America and Eastern Europe appear to be the favorite modes of expansion for most banks' asset-backed commercial paper programs lately. Royal Bank of Canada, however, is still finding ample room for growth in traditional European strongholds, and the bank recently amended three of its ABCP programs to accommodate growth in those markets.

The bank amended Old Line Funding, Thunder Bay Funding and White Point Funding so that all three conduits can fund assets through a bankruptcy-remote, feeder SPV. While acknowledging that the move signifies increased business for the bank, several market observers say that using a feeder SPV is a fairly routine tactic in the ABCP sector.

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