The full form of ABCP is Asset-Backed Commercial Paper.
Understanding Asset-Backed Commercial Paper (ABCP)
ABCP is a type of short-term money market security. Key aspects of ABCP include:
- Issuance: Issued by a special purpose vehicle (SPV) or a conduit. These are typically formed by a sponsoring finance company.
- Maturity: The maturity date of ABCP is usually no more than 270 days.
- Pricing: ABCP can be issued on a discount or interest-bearing basis.
- Reference: As per the provided reference, "Asset-Backed Commercial Paper (ABCP) is a short-term money market security issued by a special purpose vehicle (SPV) or a conduit formed by a sponsoring finance company. The maturity date of the ABCP shall be no more than 270 days and shall be given on a discount or interest-bearing basis."
