Commercial paper market cries out for Fed help

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By Jon Hay, Owen Sanderson, Toby Fildes
16 Mar 2020

The commercial paper market is emerging as a source of stress as financial markets creak under the pressure of the coronavirus crisis. This happened in the 2007-9 financial crisis too, but this time the strains are different. Market participants want central banks to act.

“At the moment, even the best borrowers are struggling to get anything beyond one or two day CP, very occasionally a week,” said the head of debt capital markets at a bank in London. “So the short term markets are breaking down.”

This is not just an isolated ...

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