Commercial Paper Expands for First Time in Six Weeks, Fed Says

The market for corporate borrowing through short-term IOUs expanded for the first time in six weeks, boosted by an increase in issuance from U.S. financial institutions.

The seasonally adjusted amount of U.S. commercial paper rose $200 million to $1.0631 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the first increase since the period ended Jan. 16 when the market surged $27.8 billion.

Commercial paper issued by U.S.-based banks also rose for the first time in six weeks, climbing $6.7 billion to $317.4 billion outstanding, according to the Fed. Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.

To contact the reporter on this story: John Parry in New York at jparry5@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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