WSJ writes "Signs of Life Emerge in Commercial Paper", saying, "The floundering commercial-paper market sparked back to life this week after some much-needed resuscitation by the Federal Reserve." It quotes our Peter Crane, president and publisher of Crane Data LLC, "The reversal of flows out of general-purpose money-market funds is an almost equally significant event and the two should soon feed off each other." Also in CP coverage, Bloomberg.com writes "U.S. Commercial Paper Soars Most on Record as Fed Becomes Buyer", citing this week's Federal Reserve "Commercial Paper Outstanding" data, which showed the biggest jump ever in CP. The article says, "U.S. commercial paper outstanding rose by $100.5 billion, or 6.9 percent, to a seasonally adjusted $1.55 trillion for the week ended Oct. 29, the Fed said today in Washington. It was the first gain in seven weeks, reversing a 20 percent decline during the previous six weeks." Bloomberg quotes Peter Crane, president of Crane Data LLC, "Confidence is coming back. Knowing the Fed will buy the longer term means companies will be able to refinance and take back their short-term paper if need be." See too, Bloomberg's "Fed Buys $145.7 Billion of Commercial Paper to Start". For more on the Fed's Commercial Paper Funding Facility, click here.
