Looking for new – and cheaper – ways to fund their businesses, several large subprime lenders have established asset-backed commercial paper conduits. Viewed as a complement or alternative to third-party warehouse funding, so-called “single-seller” ABCP programs allow lenders to avoid the fees associated with credit lines while maintaining control of asset quality. More importantly, perhaps, they also ensure a steady source of liquidity, eliminating the potential disruptions that can occur with third-party funding lines. …