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Tag: Asset types and classes

Bank issuing ABCP through asset transfer to special purpose vehicle

Understanding Asset-Backed Commercial Paper (ABCP): Structure, Risks and Key Considerations

April 7, 2024 FinanceFacts101 Corporate Finance

What is Asset-Backed Commercial Paper (ABCP)? Asset-Backed Commercial Paper, or ABCP, refers to a short-term debt security with a maturity between 90 and 270 days. A financial institution, often a bank, issues these securities, which are backed by a pool of assets such as trade receivables, auto loans, or mortgages.

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