Bloomberg writes "Google Leading a Revival in Commercial Paper" It says, "Google Inc., owner of the most popular Internet search engine, and Germany's Merck KGaA are leading a revival in commercial paper as nonfinancial companies grab the biggest share of the $1.1 trillion U.S. market from banks since 2002 amid lower borrowing costs. Industrial borrowers have $151 billion of debt typically due in 270 days or less, up 47 percent this year and 14 percent of the total outstanding, seasonally adjusted Federal Reserve data show. Google, based in Mountain View, California, started a CP program last month for as much as $3 billion, while Merck helped fund its acquisition of Millipore Corp. in July with the debt." The article quotes Barclays Capital's Chris Conetta, "There's a sense of confidence in the market. It's just so cheap for non-financial borrowers that it's attracting some back to the market." Bloomberg also writes, "Money-market investors are buying more CP because rates are double the 0.1 percent that the 100 biggest funds make on average across their holdings, according to Peter Crane, president of Crane Data LLC, a money-fund research firm in Westborough, Massachusetts." The piece quotes Crane, "Any uptick in issuance is a sign of health. The demand side has firmed."
