The creation of a bank-backed super conduit to restore liquidity in the asset backed commercial paper market will only prolong the trouble caused by the sub-prime mortgage fallout, according to traders speaking at the European CDO conference in Monaco.

The Master Liquidity Enhancement Conduit, which was announced by Bank of America, Citigroup and JP Morgan on Monday, will buy high-quality assets from structured investment vehicles, which finance long-term investments in structured credit in the short-term commercial paper markets. It is expected to reach about $80bn (€56bn) in size.