Comments on: Commercial Paper Market Still in Distress http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in.html Mon, 23 Nov 2009 12:59:05 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in.html#comment-641 Anonymous Fri, 31 Aug 2007 09:31:00 +0000 http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in-distress/#comment-641 Well a pertinent question is why should/ would anyone re-fund an 10x levered ABCP issuer that has been messing around in the CDO MBS mkt? Well a pertinent question is why should/ would anyone re-fund an 10x levered ABCP issuer that has been messing around in the CDO MBS mkt?

]]> By: Yves Smith http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in.html#comment-637 Yves Smith Thu, 30 Aug 2007 22:24:00 +0000 http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in-distress/#comment-637 Thanks for the additional information. However, the point remains that CP outstandings are still falling, even if the rate of decline has slowed. The ABCP sector is still in distress.<br/><br/>The rise in outstandings in the financial, non-ABCP could be related to the use of backup lines above, that some of that is being funded out. Or, more likely, it's noise. And a weekly rise of $3 billion is roughly 1/20 the level of decline in ABCP last week of nearly $60 billion, which as you noted was better than the preceding two weeks.<br/><br/>If that's the only good news they can find, it's indeed a glimmer. Thanks for the additional information. However, the point remains that CP outstandings are still falling, even if the rate of decline has slowed. The ABCP sector is still in distress.

The rise in outstandings in the financial, non-ABCP could be related to the use of backup lines above, that some of that is being funded out. Or, more likely, it’s noise. And a weekly rise of $3 billion is roughly 1/20 the level of decline in ABCP last week of nearly $60 billion, which as you noted was better than the preceding two weeks.

If that’s the only good news they can find, it’s indeed a glimmer.

]]> By: Anonymous http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in.html#comment-636 Anonymous Thu, 30 Aug 2007 20:46:00 +0000 http://www.nakedcapitalism.com/2007/08/commercial-paper-market-still-in-distress/#comment-636 You missed a bit or an update..<br/><br/>"The fall was the slowest of the past three weeks, following the two previous declines of about $90 billion each. Outstanding paper for financial companies, not asset-backed, rose for the first time in five weeks by $3 billion to $781.5 billion. <br/><br/>``There's a little better functionality and if there is any glimmer of hope, that's where we're finding some,'' said Kevin Flanagan, fixed income strategist at Morgan Stanley " You missed a bit or an update..

“The fall was the slowest of the past three weeks, following the two previous declines of about $90 billion each. Outstanding paper for financial companies, not asset-backed, rose for the first time in five weeks by $3 billion to $781.5 billion.

“There’s a little better functionality and if there is any glimmer of hope, that’s where we’re finding some,” said Kevin Flanagan, fixed income strategist at Morgan Stanley “

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