Guide to Asset-Backed Commercial Paper in Europe

This guide presents an in-depth examination of Asset-Backed Commercial Paper (ABCP) in Europe, detailing its fundamental concepts, market dynamics, and regulatory considerations. It outlines the differentiation between European Commercial Paper (ECP) and ABCP, emphasizing the significance of the ABCP market as a flexible short-term financing tool for large corporations and financial institutions. The guide describes various types of ABCP programmes, including bank-sponsored multi-seller structures and aggregator-sponsored programmes, along with their operational frameworks. It also covers historical developments in the ABCP market, highlighting the evolution from the early 2000s through the financial crisis and into the current regulatory landscape shaped by the European Securitisation Regulation. Key features of ABCP, including bankruptcy remoteness and the role of credit support, are detailed. Furthermore, the guide discusses the implications of EU/UK regulations on the issuance and governance of commercial paper, providing insights into compliance frameworks and market practices within this financial sector.