Download and read this document by clicking on http://www.citibank.com/transactionservices/home/oli/files/ABCP_Primer_0211.pdf 1. What are the

Download and read this document by clicking on http://www.citibank.com/transactionservices/home/oli/files/ABCP_Primer_0211.pdf

1.      What are the underlying assets in Asset-Backed Commercial Paper? List 2 or more.

2.      Is Asset-Backed Commercial Paper (ABCP) secured or unsecured?

3.      Why does offer higher yields than traditional commercial paper to investors ?

4.      What is the role of ABCP conduit?

5.      Given an example of seller in the ABCP conduit (listed in the graph on page 2)

6.      What is the role of credit enhancement provider?

You would need your financial calculator for Chapter 03 lecture and assignments