How Did Asset Backed Commercial Paper (ABCP) Rollover Risk Contribute

question 110

Essay

How did asset backed commercial paper (ABCP) rollover risk contribute to the financial crisis of 2007-2009?

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Definitions:

Relay

Any of a number of devices that receives a signal and then effects an action. In vehicle electrical circuits, relays are used to allow a small current circuit to control a large current circuit such as in a starter relay. Also known as a pilot.

Transistor

A semiconductor device used to amplify or switch electronic signals and electrical power, fundamental in modern electronic circuits.

V-Ref

Reference voltage. ECU or ECM conditioned voltage (usually 5 volts DC) supplied to various sensors (such as thermistors, potentiometers) in truck electronic circuits. In most cases, a portion of the voltage is returned to indicate the status of sensor.