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.