Asset-Backed Commercial Paper (ABCP)

Glossary

Banking

Asset-Backed Commercial Paper (ABCP)

ABCP is commercial paper (CP) issued by a bankruptcy-remote Special Purpose Vehicle SPV (known as a conduit) and collateralised by pools of underlying collateral, which consist of the same types of receivables underlying asset-backed securities (cf.). CP is a short-term instrument with maturities less than one year.

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