BMO, CIBC, Royal And Scotiabank Agree To Play Role In ABCP Restructuring

The ABCP was intended to be a conservative place to park funds and receive interest for periods of up to a year. Until last August, the notes routinely were renewed or redeemed as they matured, but liquidity dried up suddenly as investors were spooked by dramatically rising U.S. mortgage defaults. Only some ABCP is backed by mortgages. Other assets could include credit card receivables, vehicle loans and financial derivatives, but the credit crunch created uncertainty about all Canadian non-bank ABCP. ... http://www.canadianbusiness.com/markets/market_news/article.jsp?content=b020475A

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