Coventree Inc. reported late Wednesday its failure to place $399 million more worth of commercial paper, or short-term loans.
Coventree said its sponsored conduit corporate partners couldn’t place any liquidity-backed asset-backed commercial paper — also known as A notes — or extendible ABCP, known as E notes, on Wednesday.
In total, about $94 million worth of A notes and $305 million of E notes issued by Coventree’s conduits matured on Wednesday without finding any takers for a rollover.
“Since the beginning of the market disruption, approximately $3.3 billion of A notes issued by Coventree-sponsored conduits has matured, of which approximately $450 million of new A notes has been issued to the investors that held an equal amount of A notes that matured during the market disruption,” the Coventree said in a release.
In addition, during that time, an aggregate of approximately $2.2 billion in E notes has matured, of which about $163 million has been rolled over into new E notes and the remaining E notes have been extended.
The firm said it can’t predict how long the credit crunch will continue.
Coventree noted that last week a consortium representing banks, asset providers and major investors in Canadian ABCP announced a proposal to take significant steps to establish normal operations in the Canadian third-party market commercial paper.
“Coventree is aware of the efforts of the consortium to convert the Montreal proposal into a detailed plan, however until such plan is finalized, Coventree is not able to assess the Montreal proposal’s impact on Coventree and the Coventree-sponsored conduits,” the company said.
Coventree reports failure to place $399 million worth of commercial paper
Firm can’t predict how long the credit crunch will continue
- By: IE Staff
- August 23, 2007 August 23, 2007
- 10:10