The commercial paper market, led by financial issuers, rebounded sharply in the most recent week after falling in the prior seven days.

Total outstanding commercial paper jumped by $14.8 billion for the period ended this past Wednesday, to $1.491 trillion, according to the Federal Reserve. The market contracted by $7.5 billion the prior week.

Financial issuers – especially domestic companies — accounted for most of the gain, as their total outstanding surged by $26.7 billion, to $614 billion. This was the third straight weekly gain for financial issuers, an encouraging trend given they account for more than 41 percent of the total commercial paper market.

Total outstanding among asset-backed issuers climbed by $2.2 billion, to $702 billion, reversing a three-week slide.

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Non-financial issuers – the smallest piece of the commercial paper market – registered a $14 billion decline.

The total commercial paper market peaked at $2.2 trillion during the summer of 2007.

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