National Bank of Canada To Buy Asset-Backed Paper.

The article reports on the plan of the National Bank of Canada to buy nearly 2 billion Canadian dollars worth of asset-backed commercial paper held by its mutual funds and individual and corporate investors. The bank decided to make the offer rather than be forced to suspend redemptions or book losses in its money-market funds according to chief executive Louis Vachon. The move helped reassure clients and eliminate uncertainty about its asset-backed commercial paper according to analysts.