HSBC plans to double the size of its asset-backed commercial paper multi-seller conduit Bryant Park Funding to above $1 billion by this summer, says John Cutting, managing director and head of asset-backed securities. Bryant, launched last summer, has an overall maximum capacity of $5 billion. Jon Bottorff, managing director, who was hired by Cutting to run the conduit, says he wants to bring issuance to $2 billion by year-end and to $5 billion, next year (BW, 4/22). Once Bryant runs at full capacity, the bank will eventually consider creating a second U.S.-based ABCP conduit, notes Cutting.
Cutting says the conduit is offered to corporate bank customers who need to securitize some of their trade receivables, or other short-term assets, such as credit card or auto receivables, allowing them to diversify their source of funding. He says his group wants to take advantage of the bank's worldwide corporate relationships to invite non-U.S. based companies in Europe or in Asia to participate in the conduit.