ABCP

ABCP or asset-backed commercial paper is commercial paper that is backed by other financial assets (including ABS).
ABCP is utilised for short-term financing � it usually matures 90 to 180 days after issue. The ABCP issuer sells the necessary assets to a bankruptcy-remote SPV (special purpose vehicle) or a SIV (structured investment vehicle)/conduit to issue the ABCP. The ABCP market came under pressure during the financial crisis, as investors refused to rollover the ABCP due to concerns over the credit quality of the underlying assets. Consequently, many ABCP conduit sponsors had to restructure their programmes to include liquidity facilities and backstops. A number of CDOs were structured to include short-term ABCP liabilities (also known as SIV-lites) and they have since been downgraded due to the pressure on the ABCP market.