Commercial Paper Rollovers

January 27th, 2009 10:38 am | by John Jansen |

Two friends of the blog sent me copies of a Bloomberg story which details the heavy commercial paper rollovers this week which spring from the  issuance into the Fed facility established last fall when the CP market was seizing up. I spoke to the money market trader whose opinions I frequently posted here at the height of the crisis. He thinks that the rollovers will take place with little fanfare and little impact on the market.  He notes that many companies overfunded themselves at that time and many companies issued term debt in the meantime. So there will not be a huge need for funding.He did think that some large companies with substantial appetite, such as GE, will remain in need of Fed assistance.  

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  1. 2 Responses to “Commercial Paper Rollovers”

  2. By Doug P on Jan 27, 2009 | Reply

    2 year auction results (from Barrons):

    Bid/Cover 2.69
    Yield Awarded 0.925%

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  2. Jan 28, 2009: Fed Watch: Passing the Baton

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