State Street Launches US Commercial Paper Operation

May 2, 2003 ( - State Street Corp. has established a $2-billion US asset-backed commercial paper program.

Keel Capital Inc. is a new arm of State Street’s Spinnaker Capital funding program, which it launched in Australia in August 2000, according to Dow Jones. Managing Director of State Street Capital in Australia, Melissa Marzulli, told Dow Jones that Spinnaker is getting to a point where it would have trouble growing much more without diversifying into other markets. Spinnaker is one of Australia’s largest asset-backed commercial paper programs.

The program invests in assets such as mortgages, car loans and trade receivables, which are sourced from third-party originators, securitized, and sold to institutional investors in the form of short-term paper. Through Keel Capital, Spinnaker will have access to additional funding to support the purchase of Australian assets and enhance the liquidity of the Spinnaker program.

Keel Capital will be rated A-1+ by Standard and Poor’s and P-1 by Moody’s Investors Service, State Street said in the announcement.