Asset backed CP surges as conduits fund assets into January.

The article reports on the growth of the European commercial paper (CP) market due to the issuance of conduits and asset backed CP to finance new assets. The price of financial instruments have declined because of expectations that large banks will sell some of their assets in preparation for the end of fiscal year in November 2006. Demand for longer dated dollar persisted in Asia. CP Euro issuers anticipate that future rate from the European Central Bank will increase.