Outstanding Contraction!: Commercial Paper Outstanding September 2010
Liquidity moves markets!
Follow the money. Find the profits!The Federal Reserve calculates and published the total amount of CP outstanding every week and as of the latest published period, commercial paper outstanding is continuing to contract, registering just a 11.43% decline year-over-year. Although the Federal Reserve was able to artificially bring CP rates down significantly since the shocking 615 basis point spread blowout (A2/P2 spread) of late 2008, they have apparently not been successful in preventing an overall contraction in the CP market.
It’s important to note that at $1.091 trillion, total commercial paper outstanding is significantly lower than the level seen in the trough of the dot-com recession and very near the low for the series.
