Partially enhanced ABCP outstandings grew 4.3% from the 3Q04 to $601 billion at the end of 2004, consistent with amounts recorded at year-end in 2002 and 2003, according to a new report from Standard & Poor's. This figure has remained constant for the past three years, after growing an average 36% annually during the preceding 10 years.
From December 2002 to December 2004, combined issuance out of multiseller and loan-backed conduits declined by roughly $52.7 billion, the report found. However, this decline was offset by a $51.7 billion increase in issuance out of single-seller and arbitrage conduits during this timeframe. "Conduits that were newly rated in 2004 contributed to a significant portion of the growth of partially enhanced ABCP issuance out of single-seller and arbitrage conduits," an S&P analyst noted.