What Is Asset-Backed Commercial Paper (ABCP)? Definition, Benefits, and Risks
Understanding Asset-Backed Commercial Paper (ABCP)
Asset-backed commercial paper (ABCP) is a short-term debt instrument, typically maturing in 90 to 270 days, that is secured by a pool of underlying financial assets. Unlike traditional commercial paper, which depends solely on the creditworthiness of the issuing corporation, ABCP is supported by receivables