DNAprint Genomics (DNAG)

[dgplexus]

Good news -- the credit markets are continuing to thaw. This could help greatly with DNAPrint Genomics' search for new funding. In the meantime, I'm hoping the millions of shares I'm buying, will help. I see a tremendous amount of value in this company, that is not nearly adequately reflected in its market cap.


http://www.bloomberg.com/apps/news?pid=20601087&sid=a7waFYSdmhXo&refer=home


Short-Term Borrowing Rates Fall to Four-Year Low on Fed Efforts

By Bryan Keogh

Oct. 22 (Bloomberg) -- Corporate short-term borrowing costs plunged after the Federal Reserve accelerated efforts to unlock the commercial paper market by providing loans to money-market funds that buy the debt.

Rates on the highest-ranked 30-day commercial paper dropped 1.46 percentage points, the most on record, to 1.92 percent, according to yields offered by companies and compiled by Bloomberg. Rates on overnight and 90-day paper also declined.

The Fed committed yesterday to provide as much as $540 billion in loans to relieve pressure on money-market funds, its third action since the bankruptcy of Lehman Brothers Holdings Inc. contributed to the credit freeze that threatens to tip the economy into a prolonged recession. The backstops are ``having a major effect,'' Tony Crescenzi, chief bond-market strategist at Miller Tabak & Co. LLC in New York, wrote in a note to clients.

``It's almost completely backstopped now, both by the private sector and the Federal Reserve, and rates should fall in line,'' Crescenzi said in an interview today.

Citigroup Inc., the second-biggest U.S. bank, today posted a rate of 3.22 percent on 30-day commercial paper, down from 3.6 percent on Oct. 20 and the lowest in four weeks. American Express Co., the biggest U.S. credit-card company by purchases, cut its rate to 2.25 percent from 2.3 percent, the lowest since June 3.

The highest-rated companies are now issuing more longer-term paper after Lehman's bankruptcy left most companies, particularly banks, unable to issue debt due in more than one day. Commercial paper, which typically matures in 270 days or less, is used by companies to finance payroll, rent and other daily expenses.

Issuance of commercial paper due in more than 20 days averaged $31.9 billion on Oct. 20 and 21, or 17 percent of the total, compared with 9 percent two weeks ago, according to Fed data. One- to four-day issuance averaged $139.3 billion, or 75 percent of the total, down from 82 percent two weeks ago.

New York Fed

JPMorgan Chase & Co. will run five special units that will buy certificates of deposit, bank notes and commercial paper issued by highly rated financial companies with a remaining maturity of 90 days or less under the Market Investor Funding Facility.

Borrowers were able to begin registering Oct. 20 for the Commercial Paper Funding Facility, which the Federal Reserve Bank of New York created Oct. 7 to inject liquidity into the market and ensure companies can borrow short-term debt.

On Sept. 19, the Fed created a program to allow banks to buy commercial paper backed by assets from affiliated money market funds and exempted banks from capital requirements related to holding the debt.

Rates on overnight commercial paper fell 4 basis points to a record low 0.74 percent, while 90-day yields declined 18 basis points to 3.31 percent, Bloomberg data show.

The cost of borrowing in dollars in London for three months fell for an eighth day. The London interbank offered rate, or Libor, that banks charge each other for the loans dropped 29 basis points to 3.54 percent, according to the British Bankers' Association. A basis point is 0.01 percentage point.

To contact the reporter on this story: Bryan Keogh in New York at [e-mail]

Last Updated: October 22, 2008 12:55 EDT