ABCP is MIA

The plunge in outstanding asset-backed commercial paper continues, according to the latest Federal Reserve figures. Specifically, the amount of ABCP (short-term debt securities that mature in 270 days or less and that are backed by bundles of credit card loans, auto loans, mortgages, and so on) outstanding fell to just $791 billion in the week ended December 12 from a peak of $1.2 trillion in August. Why? As an economist in this Bloomberg story noted "everything with the word asset-backed included is just radioactive these days."