• Asset-backed commercial paper (ABCP) is a type of short-term investment with a maturity of 270 days or less.

  • A bank, financial institution, or large corporation usually issues ABCPs, which are collateralized notes.
  • The collateral often consists of expected future payments or receivables from the corporation.
  • These receivables may include payments that the corporation expects to receive on loans it has made, such as auto loans, credit card debt, student loans, or home mortgages.