The US asset-backedcommercialpaper market asset-backed seized up – although the Fed’s rate cut has helped Fed’s economics@ Sources: Bloomberg; US Federal Reserve Heightened ‘risk aversion’ has resulted in a de ‘risk aversion’ facto tightening
also lose value sharply economics@ The US asset-backedcommercialpaper market asset-backed seized up – although the Fed’s rate cut has helped Fed’s economics@ Sources ... on mortgage-backed securities mortgage-backed Structure of a typical ‘collateralized debt
The commercialpaper market (especially the assetbacked sector) has been hard hit CP yield curve % pa 17 Aug 2007 (pre-Fed actions) 23 Aug 1 Aug day day day day day day day day mo mo mo ABCP yield curve % pa 23 Aug 17 Aug 2007 (pre-Fed actions ... Commercialpaper outstanding US$bn Latest week: Aug 31-Dec 27-Mar 26-Jun 25-Sep Assetbackedcommercialpaper US$bn Latest week: Aug 31-Dec 27-Mar 26-Jun 25-Sep Sources: Bloomberg; US Federal Reserve