Commercial Paper Falls $35.8 Bln

Biggest decline in 19 months led by plunge in non-financial company issuance.

The market for U.S. corporate borrowing via commercial paper contracted by the most in 19 months, led by a plunge in the amount of issuance from non-financial companies, amid signs economic growth is slowing.

The seasonally adjusted amount of U.S. commercial paper slid $35.8 billion to $972.5 billion outstanding in the week ended Wednesday, the Federal Reserve said yesterday on its website. It’s the biggest drop since a $44.3 billion contraction for the period ended Dec. 1, 2010, and the lowest level since $966.4 billion for the week ended May 9, according to Fed data compiled by Bloomberg.

Funding Reliance

The non-financial commercial paper segment also contracted at the close of 2011 and at the end of the first quarter.

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