Commercial Paper
Collapse In Commercial Paper Outstanding Bodes Ill For Corporate Growth
Submitted by Tyler Durden on 09/01/2009 13:24 -0500Investment grade bond issuance this year hit all time records, with the six-month moving average hitting an unprecedented $692 billion through May of 2009. And yet while government guaranteed Aaa financial company issues accounted for a major portion of this, IG-rated industrial companies issued a record $317 billion of new bonds this year. Yet, in many ways like the Cash for Clunkers subsidy, the government endorsed refi binge is coming to an end, and Moody's estimates that July and August will have a monthly IG issuance of $66 billion on average, which represents 57% of the monthly average through May.
