Banks carry on conduit lending despite coronavirus crunch

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By Owen Sanderson
06 Apr 2020

According to data from the European Securities and Markets Authority, new trade receivables securitizations are still being regularly financed by banks through their asset-backed commercial paper (ABCP) conduits, with market participants saying that lenders remain open for business — for existing clients only.

Notifications to ESMA for “simple transparent and standardised” (STS) securitizations show 40 ABCP transactions since the beginning of March, 35 of which have been since March 16. Of the 40 deals, 29 were trade receivables transactions.

While many of these deals will have been planned before the coronavirus ...

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