Claims on foreigners reported by U.S. nonbanking concerns were revised for 2005-2007 to expand significantly the coverage of financial intermediaries’ claims associated with the issuance of asset-backed commercial paper. During this period many offshore structured investment vehicles and asset back commercial paper (ABCP) conduits set up 100-percent-owned affiliates in Delaware for the sole purpose of issuing ABCP in the U.S. market. The ABCP proceeds were then lent to the offshore special purpose vehicles, which used the funds to purchase other assets. The intercompany debt transactions between Delaware affiliates and their offshore parents took the form of increases and decreases in U.S. nonbank claims on financial intermediaries’ accounts. Estimates were based on data from industry sources.
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