Fitch: U.S. ABCP Credit Consistent Despite Declining Outstandings
ABCP conduits remain a significant source of funding for core bank clients. Despite declines in market outstandings, collateral credit quality and performance measures remain strong and transaction structures robust.
In late March, Fitch affirmed 26 U.S. ABCP programs following the completion of its annual portfolio review. The rating actions were based on a review of the conduits' portfolio compositions and the vehicles' credit and structural protections such as transaction-specific and program-wide credit and liquidity support. Outstandings across the 26 programs totaled \$113 billion. Auto and commercial, trade receivables, credit cards and student loans account for most of the conduit holdings. Facility utilization rates across the portfolio were flat from last year at 63%.
Fitch has published a report summarizing its findings, 'U.S. ABCP Portfolio Review Summary'. The results are generally consistent with observed market activity over the last several years. The report includes a review of trends in ABCP outstandings, portfolio compositions and facility utilization rates.
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