OVERLAND PARK, Kan. -- In mid-April U.S. Central became theadministrator of Sandlot Funding LLC, an asset-backed commercialpaper financing conduit.

U.S. Central anticipates that Sandlot Funding will be a sourceof additional liquidity and fee income, according to a letter U.S.Central sent to corporates.

According to the Asset-Backed Commercial Paper Market Reviewfrom Moody's, Sandlot Funding has the ability to issue up to $10billion. Sandlot will issue secured liquidity notes and invest in avariety of highly-rated asset backed and mortgage-backedsecurities. According to Moody's, at least 90% of Sandlot Funding'sassets must be AAA/Aaa rated and can not be lower than A/A2.Ten-percent can be in assets not rated by Moody's, which couldinclude corporate bonds and collateralized debt obligations.Sandlot will focus on liabilities maturing in less than oneyear.

The funding structure allows U.S. Central to earn arbitrage byswapping out one asset for another. It's a common funding structureagreement used today by large banks and financial companies, but isthe first of its kind in the corporate network

In an investor presentation, U.S. Central describes SandlotFunding as "merely an extension" of its current business.

"U.S. Central continuously looks for ways to leverage itsexpertise for the benefit of the corporate network. Sandlot FundingLLC is just one example of those efforts," said U.S. Central CEOFrancis Lee.

Corporate One CEO Lee Butke praised the move. "Anything that canbring outside liquidity into the system is a positive. U.S. Centralshould be in the national markets," said Butke.