German Insurer To Expand ABCP Into Europe

Gerling NCM, a German credit insurer, is beginning to market its asset-backed commercial paper conduit to clients outside Germany. The conduit will be called Securefin outside Germany and will be targeted at small- and medium-sized companies with between E5 million and E60 million in trade receivables to securitize, says Jurgen Mortag, head of structured credit based in Cologne.

Mortag says the small- and medium-sized companies have always been the target market for Gerling's ABCP in Germany and the firm believes there is a niche for the product elsewhere. Securefin is willing to securitize smaller amounts than other banks' ABCP products, he adds. The firm is marketing the ABCP to banks as well as to its own clients.