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Plenary

Plenary. Presentation 1. Are you attending today’s conference as…. An issuer An investor A dealer Other. What do you think is the main source of the decline in outstandings in the ABCP market?. Unexpected volatility in the price of underlying assets

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Plenary

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  1. Plenary Presentation 1

  2. Are you attending today’s conference as… • An issuer • An investor • A dealer • Other

  3. What do you think is the main source of the decline in outstandings in the ABCP market? • Unexpected volatility in the price of underlying assets • Overall uncertainty in the credit and money markets • Some structures not adequately robust • Lack of availability of information

  4. In making decisions to invest in ABCP, information received through information memoranda, issuer pool reports, rating agency reports, issuer presentations, dealers, and conferences is: • More than sufficient • Adequate • Needs some refinements • Inadequate

  5. Global ABCP outstandings were $1.5 trillion at the end of June 2007.  What will global ABCP outstandings be one year from now? • $0.5 trillion • $0.9 trillion • $1.3 trillion • $1.7 trillion

  6. Plenary Presentation 2

  7. What do you think was the main reason for the freeze in liquidity this summer? • Direct or indirect sub-prime exposure in ABCP vehicles • Lack of transparency overall re vehicles’ asset composition • Market value risk in vehicles • Lack of understanding of ABCP mechanics • Confusion over banks’ responsibilities for their own conduits • Fear of poor secondary market pricing for ABCP

  8. What will be the most significant change to the ABCP market after this liquidity squeeze? • A reduction in the size of the ABCP market • A restriction in the types of vehicle able to fund in the ABCP market • The limitation of innovation in the ABCP market • An increase in the amount of disclosure and transparency • A restriction on the types of institution able to sponsor vehicles and use ABCP as a funding tool • Higher yields on ABCP

  9. The global ABCP market has shrunk to approximately $1.1bn from its peak of around $1.5bn. By the end of July 2008, what will be the size of the global ABCP market? • 50% of peak • 80% of peak • Back to its previous peak • 110% of peak • 120% of peak

  10. What is most likely to assist in the return of investor confidence and resumption of growth in the ABCP market? • Better disclosure by issuers • A greater degree of regulation in the ABCP markets • Pressure on investors to earn spread • A limitation on the types of vehicle attempting to fund in the market

  11. What is least likely to assist in the return of investor confidence and resumption of growth in the ABCP market? • Better disclosure by issuers • A greater degree of regulation in the ABCP markets • Pressure on investors to earn spread • A limitation on the types of vehicle attempting to fund in the market

  12. Do you think M-LEC will have a positive impact on the market for SIV senior debt? • Yes • No

  13. Plenary Presentation 4

  14. Do you feel ABCP structures are: • Complex but understandable • Complex and obscure • Not that complex once you get into it • A good social conversation topic

  15. Do you make investment decisions on ABCP based PRIMARILY on: • Disclosure info in PPMs/Info Memos • Rating Agency Material • Other

  16. Is it likely that you might make changes to your programs? • No changes • Structural changes • Disclosure changes • Changes in asset mix • Combination of 2, 3 and 4

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