"What is commercial paper, and why does it matter?" writes the Associated Press. The article describes the CP market and answers questions such as "What exactly is the commercial paper market?" and "What type of companies raise money on the commercial paper market, and what do they do with it?" It also asks, "Besides corporations with extra cash, who supplies the money to the commercial paper market?" AP answers, "Money-market mutual funds and other funds open primarily to institutional investors buy about 60 percent of the commercial paper in the market, according to Peter Crane, president of fund-tracking firm Crane Data." "Money-market funds are the 800-pound gorilla in the commercial paper market," Crane said. "By participating, money funds typically generate a higher yield than from investing in safer government debt such as Treasury bills." Also, see WSJ's "Fidelity, Vanguard Join Treasury Program: Move Will Protect Money Funds; 'Shot of Confidence'".
