Outstanding Contraction!: Commercial Paper Outstanding September 2010
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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.