Recovery Continues in ABCP and Money Markets Despite Northern Rock. The commercial paper and ABCP markets continued their recovery today, despite news of UK-bank Northern Rock being bailed out by the Bank of England. Bloomberg writes, "Asset-backed Paper Yields Fall to One-Month Lows", saying CP yields were the lowest since Aug. 16. The article quotes Peter Crane, "The funds are seeing this as an opportunity to extend themselves.... They were afraid and all they needed was a little courage." Russell's Mark Amberson, cautioned, "The market's still subject to daily news flashes that could trip up this improved tone. Woe be to the investor who forgets the past six weeks." The positive tone was set this morning by a barrage of CP market recovery articles yesterday on Bloomberg, last night in the FT, and today by AP and The Wall Street Journal "Is There Hope for Commercial Paper?".

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