Some banking organizations sponsor Asset-Backed Commercial Paper Programs, or so called “remote origination” conduits. This type of “remote origination” conduit lends directly to corporate customers that are referred to it by the sponsoring banking organization that used to lend directly to these same borrowers. The conduit funds this lending activity by issuing commercial paper that, in turn, the sponsoring banking organization guarantees. The net result is that the sponsoring institution’s credit-risk exposure through this guarantee is about the same as it would have been if it had made the loans directly and held them on its books. However, this is an off-balance-sheet transaction. (Federal Reserve-Trading and Capital-Markets Activities Manual)