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.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.