BIS central bankers’ speeches  1  Next step: The distress in mortgage markets was amplified in the broader financial system in several ways, including something similar to a bank run but which instead occurred on assetbacked commercial paper (ABCP) vehicles. These vehicles invested in private-label mortgage securitizations and other long-term debt securities but were funded with short-term commercial paper.
Buyers of the commercial paper issued by the ABCP vehicles withdrew funding starting in the late summer of 2007. The volume of assets in the vehicles was large, about $ billion, and after the run, the ability of the financial system to fund credit through many types of assetbacked securities became constrained.