Friday, October 9, 2009

Rate on Non-Financial CP: Lowest in 9 Years

Commercial Paper issued by non-financial companies pays the lowest rate in 9 years. However, the rate is just tracking LIBOR, and the spread between the two is simply coming back to normal levels.


(Click to enlarge.)

In the top pane, the CP rate is plotted in white and 3-month LIBOR in amber. The spread is shown in yellow in the bottom pane.

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