Commercial Paper Hits Five-Month Low

Decline of $10.2 bln in latest week reflects credit concerns, competition from longer-term debt.

The market for corporate borrowing through commercial paper contracted to the lowest level in five months as issuers reduced offerings of short-term IOUs, instead extending debt maturities by selling corporate bonds.

The seasonally adjusted amount of U.S. commercial paper fell $10.2 billion to $964.9 billion outstanding in the week ended yesterday, the Federal Reserve said today on its website. It’s the longest stretch of declines since the period ended Oct. 19, 2011 and the lowest level since the market touched $939.9 billion May 2, according to Fed data compiled by Bloomberg.

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