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Fitch: Reduced ABCP Supply Drives Decline in Money Fund Commercial Paper Holdings
April 1, 2014 / 2:12 PM / 4 years ago

Fitch: Reduced ABCP Supply Drives Decline in Money Fund Commercial Paper Holdings

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Commercial Paper Spotlight here NEW YORK, April 01 (Fitch) U.S. money market fund (MMF) investments in commercial paper (CP) have declined at a moderate but steady rate over the past year, driven by declines in asset-backed commercial paper (ABCP) and nonbank CP, according to a Fitch Ratings report. As of end-Feb. 2014, the combined share of CP holdings among the top-10 U.S. MMFs was 20.2%, a decline from 23.9% in Feb 2013. On a dollar basis during the same period, CP holdings were approximately $137 billion compared with $160 billion a year earlier, a 14% decline. This shift has been partly driven by a reduction in ABCP investments. Relative to the year-earlier period, outstanding amounts of ABCP as of end-February 2014 were 22% lower. Fitch believes regulatory uncertainty surrounding bank sponsors' future liquidity support for ABCP programs appears to be contributing to the continuing shrinkage of that market. The Basel III liquidity coverage ratio (LCR), which banks must meet by 2019, is leading some sponsors of traditional multi-seller ABCP programs to re-assess the impact of liquidity support for these vehicles. For more information and figures, the full report 'Commercial Paper Spotlight' is available at '' Contact: Robert Grossman Managing Director +1-212-908-0535 Fitch Ratings, Inc. One State Street Plaza New York, NY 10001 Kevin Corrigan Senior Director +1-212-908-9156 William Warlick Senior Director +1-312-368-3141 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: Additional information is available at ''. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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