Number Of CP Issues For 81+ Days 954 Vs 1,511 Mon - Fed
10/29 09:59 AM
NEW YORK (Dow Jones)--For the second day running, commercial paper borrowing for debt maturing past 81 days showed an increase Tuesday, though the pace slowed from Monday, according to data released by the U.S. Federal Reserve on Wednesday.
On Tuesday, companies borrowed $41.6 billion versus $67.1 billion on Monday, the first day that the Fed's backstop facility to tide over companies unable to get debt maturing past just a few days became operational.
The asset-backed segment comprised $14.8 billion of the borrowing, versus $ 27.68 billion on Monday.
"The facility has given a boost to this market," said a trader at a primary dealer, who said the flurry continued Wednesday morning. "If it continues for a week, we can say the program has had a solid impact in the market."
He has processed orders for a little over $5 billion so far. Of this, 40% is for debt that matures in 30 days or more.
Companies rely on the commercial paper market to fund their everyday needs like paying employees and landlords and for rent and supplies.
The number of issues that came to market Tuesday fell to 954 from 1,511 on Monday. On Friday, that number was 623.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com
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10-29-080959ET
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