Bloomberg's "Coca-Cola Flees Commercial Paper for Safety in Bonds" says Coke "is fleeing commercial paper for the safety of long-term bonds. The world's largest soft-drink maker joins a growing number of borrowers reducing their dependence on the debt this year." It quotes our Peter Crane, "People want to push down their debt levels, build up their cash war chests and have lots of sources of funding, just in case one of the legs of their stools gets kicked out". Bloomberg also quotes WellPoint Chief Financial Officer Wayne DeVeydt, "What we've really done is hedged against another crash in the CP market.... If you have another run on the bank, which is really what happened to many companies in the fourth quarter of last year, you're not going to get access to other long-term debt." See also, Reuters' "Fund firms drop demand for money market liquidity", which says, "European fund firms, who were calling on the region's central banks for greater liquidity for money market funds, have quietly dropped their demand as flows to the sector have improved, a senior fund manager said." The article cites Kathleen Hughes, managing director and head of global liquidity EMEA at JP Morgan Asset Management.
