Asset-backed commercial paper and associated structures
Asset-backed commercial paper and associated structures

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Asset-backed commercial paper and associated structures
  • What is asset-backed commercial paper?
  • Why use ABCP?
  • Principal ABCP markets
  • Structures
  • Key features of SIVs and ABCP conduits
  • Key differences between SIVs and ABCP conduits
  • SPVs
  • Investment strategy

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—key issues for debt capital markets transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

What is asset-backed commercial paper?

Commercial paper (CP) is a short-term debt security (see Practice Note: Commercial paper and euro-commercial paper).

Where CP is generally only issued by highly-rated corporate entities or by finance vehicles, asset-backed commercial paper (ABCP) can be issued by companies with a wide range of credit ratings. This is because it is secured by