Commercial Paper Outstanding Rebounds
Though of course you didn't hear it on any news reports, the Federal Reserve's Commercial Paper Outstanding page showed CP issuance rebounded last week, rising over $18 billion from $1.065 trillion to $1.083 trillion. Foreign CP and Asset-backed CP increased also. The Fed's data show that foreign CP accounts for $34.0 billion of $139.9 billion in nonfinancial CP and $166.8 billion of $515.8 billion in Financial CP. ABCP accounts for $427.4 billion of the total CP outstandings. The Fed's weekly data also show that Tier 1 CP totals $870.3 billion while Tier 2 CP totals a mere $40.0 billion. The Federal Reserve also shows CP Rates. See also, "A nation of risk-takers reverses course, hoards cash"," which says, "Has the modern world ever been willing to earn so little on so much? The amount Americans have in basic savings accounts at banks and thrifts rose to a record $5.1 trillion at the end of May, a jump of $215 billion just since the start of the year. Nobody is parking cash at a bank for the yield. These accounts -- passbook-type vehicles and money market deposit accounts -- are mostly earning less than 1 percent annual interest.... But even as bond portfolios hold a record $2.4 trillion, individuals and institutions still sit with $2.8 trillion in money market mutual funds that pay next to nothing."
