Canada pension fund invests $5.9 billion in ABCP

Unprecedented assurances have convinced the Canada Pension Plan Investment Board to invest $5.9 billion in asset-backed commercial paper. The pension fund said the banks agreed to stand behind their commercial paper if a market disruption should occur, and have provided additional collateral. "Had these adjustments not taken place, we would not have been an investor," said David Denison, the pension board's chief executive.

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