Is the asset-backed commercial paper market poised for a comeback?

For two consecutive weeks the Federal Reserve Commercial Paper Outstanding report has shown an increase in outstanding asset-backed commercial paper (ABCP), for the first time since August. Two weeks is not enough to establish a new trend yet, but it is notable against the backdrop of a steep decline of ABCP over the past five months.

There will continue to be a string of bad news for the asset-backed securities markets over the coming weeks and months, but we are also likely to see a rising tide of positive news and data as well.

-- Jack Krupansky