Search
 

Wobbly CP Market Stabilizes

More M&A, inventories likely to boost issuance

By Robert Rosenberg | Updated on September 02, 2010

After a long slide, the commercial paper (CP) market appeared to perk up this summer. The amount of CP outstanding, which peaked at $2.2 trillion in 2007, hit a low of $1.042 trillion dollars this June, then rose some $70 billion over the next six weeks, to $1.1 trillion. Optimists began to speculate that the downward trend was over. But the Federal Reserve’s data for the week ended Aug. 25 showed the CP market had slipped about $25 billion, to $1.087 trillion. Is the CP market signaling that the economy is dipping back into a recession?

Actually, it’s a case of two steps forward, one step back, says Robert Little, head of global short-term fixed-income origination at Bank of America Merrill Lynch. Despite the fluctuations, “the market has stabilized,” he says. “We’re not seeing [significant] contraction.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.