Capital Markets

Rising Tide? Weekly Commercial Paper Sales Climb

Corporations issued $83 billion more in short-term paper this week than last week.
Stephen TaubJanuary 9, 2009

The commercial paper market expanded during the past week: total outstanding commercial paper climbed by $83.1 billion, to $1.76 trillion for the week ended Wednesday, according to the Federal Reserve. This was the first increase in three weeks and the largest weekly jump in two months.

Sales of asset-backed paper surged by $46.3 billion, to nearly $780 billion. This was its biggest weekly increase ever, according to Reuters. Sales by nonfinancial issuers jumped by $36.2 billion, to $224 billion, the first increase in four weeks.

Sales by financial issuers were virtually unchanged, however. They fell by $5 billion the previous week. The total commercial paper market still is down from $1.82 trillion about four months ago and the peak of $2.2 trillion during the summer of 2007.

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