UBM, the investment banking arm of Unicredito Italiano, is studying the viability of launching an asset-backed commercial paper conduit. Massimo Bianchi, head of debt capital markets in Milan, says, the firm currently is trying to understand whether such a vehicle would be worth establishing and is drawing up a business plan. He declined further comment. A banker at a rival firm in Milan notes that there are a lot of prospects for ABCP conduits in Italy, especially among medium-sized corporates. Strategically, the establishment of an Italian-domiciled ABCP would be good for UBM because the banker expects a huge development in the Italian market for this kind of vehicle. He notes that it is more cost-efficient for medium-sized Italian corporates--that are increasingly seeking to securitize trade receivables--to use ABCP rather than a term securitization.
Italian Bank Eyes ABCP Conduit