Commercial paper outstanding fell for an 8th straight week, led by an
$11.4b drop in domestic financial CP outstanding. The main theme behind
the fall in this category has been the corporate decision to term out
one’s financing needs and rely less on the very short term funding
source of the commercial paper market. The FDIC’s Temporary Liquidity
Guarantee Program (TLGP) initiated back in October, provided a cheaper
way for financial co’s to sell up to 3 year debt that would be
government guaranteed, thus providing competitive, longer term (relative
to CP) financing. Those financials who want to be free from the TARP,
have been issuing non FDIC guaranteed debt with BAC the last one to do
so with a 10 yr issue back on May 28th.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.