WorldCom temporary scare removed from conduit market

So far, it doesn't appear that asset-backed commercial paper investors will be directly impacted by the financial discrepancies involving WorldCom - at least not technically. The news of WorldCom's $3 billion-plus accounting mishap, however, sent headline ripples through all debt markets with exposure to the scandalous telecom, according to published reports.

ASR is hearing that the bank administrators and/or liquidity providers for WorldCom's trade receivables facilities were separately purchasing the entire $1.5 billion in WorldCom tainted receivables out of their conduits. In fact, by the end of last week, it was anticipated that WorldCom would be completely out of the market.