Gavekal Capital: Asset Back Commercial Paper Continues Falling

Tuesday, November 12, 2013

Asset Back Commercial Paper Continues Falling

The asset backed commercial paper market was one of the signature signs of the shadow banking system leading up to the Great Recession. This market mechanism for creating credit has all but evaporated. From 2004 to 2007, the amount of ABCP outstanding nearly doubled. Since peaking in 2007, the amount outstanding as fallen by nearly 80% and the latest data shows the amount outstanding making new cycle lows.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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