Back
Asset-backed commercial paper conduit
A special purpose entity usually created by a large financial institution to acquire assets from one or more clients for securitization purposes and which allows these clients to access the bond or commercial paper market indirectly while benefiting from advantageous financing costs.
(1) The term single-seller conduit is used when the securitization transaction only involves the assets of a single client. The term multi-seller conduit is used when the securitization transaction involves the assets of several clients in order to facilitate access to this type of financing for clients who cannot shoulder the securitization transaction costs alone because they have an insufficient volume of assets to be securitized.
(2) An asset-backed commercial paper conduit (or ABCP conduit) is a multi-seller conduit whose asset acquisitions are financed through the issue of commercial paper.
Translations
Synonyms and variations
- ABCP conduit
- Conduit
- Multi-seller conduit
- Single-seller conduit