The essence of an asset-backed commercial paper (ABCP) conduit is to utilize the cash proceeds raised from issuing short-term debt instruments to finance specific asset pools that typically possess varying repayment terms. In many instances, the repayment dates on the assets are well beyond the dates on which the conduit is obligated to repay its shorter term debt instruments, which can mature on any given day. To be able to remain continuously invested in its asset pools, the conduit typically endeavors to issue new short-term debt to repay the maturing short-term debt (a CP "rollover"). To protect holders of maturing CP notes against the possibility of the conduit being unable, for whatever reason, to issue new CP notes, most ABCP
