Two more Canadian companies have announced they’re stocking up on asset-backed commercial paper over the last two days. Industrial Alliance Insurance and Financial Services, a life and health insurance company, said Tuesday that it would buy all non-bank-sponsored ABCP held in the Industrial Alliance Group’s money market funds. Meritas Financial, an investment provider, also announced that it would buy all of the ABCP in the Meritas Mutual Funds yesterday.
“Our goal in taking this initiative, which is in the best interest of our clients, distribution networks and financial partners, is to offer a solution to the ABCP market’s liquidity crunch,” stated Yvon Charest, Industrial Alliance’s president and ceo, in a news release.
IAIFS will be spending $77 million on its purchases. Another company, 45% owned by IAIFS, has $31 million invested in non-bank-sponsored ABCP. The company has an additional $114 million of non-bank-sponsored ABCP invested in vehicles other than money market funds. “These securities represent, at the most, 2.7% of each of these funds,” the company said in the release. Meritas’ ABCP purchase is valued at under $2 million.