Sentences with phrase «commercial paper market»

In 2007 Scotia came to the rescue of Canada's DundeeWealth, which had gotten into trouble when the asset - backed commercial paper market collapsed.

NEW YORK, Sept 25 (Reuters)- The U.S. commercial paper market shrank dramatically, marking the biggest weekly contraction in a year, Federal Reserve data showed on Thursday, as the escalating global credit crisis shook investors» confidence in all but the safest instruments issued by the U.S. government.

When the asset - backed commercial paper market shut down in August 2007 because of the credit crunch, Coventree ceased operations and announced that it would wind down its business.

The asset - backed commercial paper [ABCP] market is a small slice of the total commercial paper market, and those financing subprime mortgage receivables are smaller still.

The Federal Reserve had to move quickly to support the failing commercial paper market.

representing a number of dissident note - holders opposed to the restructuring of Canada's non-bank asset backed commercial paper market;

For the week ended Sept. 24, the size of the U.S. commercial paper market, a vital source of short - term funding for daily operations at many companies, shrank by $ 61.0 billion to $ 1.702 trillion, the lowest level since early 2006 and down from $ 1.763 trillion the previous week, Federal Reserve data showed.

Retail investors were never told that the commercial paper market was a complex game of financial engineering.

When the commercial paper market froze during the financial crisis, the sponsoring bank was suddenly on the hook.

These funds provided short - term financing to numerous firms and institutions through the commercial paper market.

Lend to high - quality companies for 30 days in the commercial paper market, and the yield of 2.4 % is above inflation and more than the 1.95 % dividend yield from the S&P 500.

Financial markets have changed a great deal since the pre-crisis period, and while firms used to finance themselves heavily at the front end of the curve (for instance, through the commercial paper market), today the back end is much more important.

The company stated in its most recent investor presentation that it is committed to maintaining its investment grade rating and access to the commercial paper market.

Another worry is mission creep: «If the Fed can support the mortgage and commercial papers markets... why shouldn't it support the market for student loans — or any other market for that matter?»

The company tried to issue more commercial paper, but the auction failed, which forced it to exit the commercial paper market.

Onto the Commercial Paper Market.

How could the Fed break the logjam in the commercial paper market, particularly ABCP?

As a result, the Commercial Paper market is showing some life, even for asset backed commercial paper.

The commercial paper market, a vital conduit of financing for U.S. companies, has shrunk dramatically in the past two weeks because of worries that assets in the ABCP collateral pool included tainted subprime mortgages.

They certainly still borrow enough enough in the commercial paper market, though not as much as they used to.

Suppose the economy goes through a wrenching liquidity crisis, where credit suddenly becomes unavailable, and the commercial paper markets (the typical source of liquidity for corporations) and the bank lending markets both freeze.

Concerns regarding the stability of key financial institutions drove central banks to provide funds to encourage lending and restore faith in the commercial paper markets, which are integral to funding business operations.

In another step aimed at unfreezing the commercial paper market, the Federal Reserve Bank of New York clarified its discount window rules with the effect of enabling banks to pledge a broader range of commercial paper as collateral.

Companies were counting on the commercial paper market.

I assume money market outflows would mean less liquidity in the commercial paper market, or that the Fed will take up even more slack there.

Commercial paper markets are a cheap source of financing but while it may be cost - efficient, the downside is the very short - term average maturity, which is approximately 50 - 55 days in Europe, bankers said.

00:00 Fed move to buy money fund commercial paper 01:59 Commercial paper market; «shortage» of loans 04:36 U.S. credit markets, Fed liquidity efforts 06:59 Outlook for housing, mortgage markets 07:54 Potential second stimulus a «short - term fix» 09:27 Fannie and Freddie loan, mortgage rules 11:08 Bank lending practices, housing market 13:10 Fed liquidity efforts: impact on inflation 16:01 Outlook for U.S. dollar, stocks: strategy Running time 19:47

Problems with some mortgage lenders» portfolios and credit practices shouldn't severely blemish the commercial paper market, Kornitzer added.

«Commercial paper markets have been hurt just as much as a lot of other credit markets,» said RBC Capital Markets analyst Jason Arnold.

The erosion of the commercial paper market is «a manifestation of the credit crunch's self - reinforcing impact on the U.S. economy,» Kim added.

A similar dynamic is roiling the commercial paper market, analysts say.

Analysts agree that the commercial paper market, along with most other conduits of short - term borrowing for banks and companies, has become effectively paralyzed over the past week.

These included a credit facility for «primary dealers,» the broker - dealers that serve as counterparties for the Fed's open market operations, as well as lending programs designed to provide liquidity to money market mutual funds and the commercial paper market.

Coordinated global interest rate cuts, promises to insure all manner of deposits, bank recapitalizations in Europe, the Federal Reserve's direct intervention in the commercial paper market and other measures were all adopted.

Since us little guys don't have access to the commercial paper markets and guaranteed lines of credit (HELOCS can be frozen), we're really safer keeping cash on hand and foregoing the (negligible) interest savings in return for peace of mind.