The market for corporate borrowing through short-term IOUs expanded for the first time in four weeks, led by issuance from non-financial companies.
The seasonally adjusted amount of U.S. commercial paper increased $5 billion to $1.059 trillion outstanding in the week ended Nov. 27, the Federal Reserve said today on its website. That’s the highest level since Nov. 13 for the measure, which rose from the least since Oct. 16.
Demand from money-market funds, among the biggest buyers of the debt, is stoking commercial-paper sales. Total assets in the funds increased $15.1 billion to $2.678 trillion in the week ended Nov. 27, the highest level since the period ended Oct. 2, according to the Investment Company Institute.
IOUs issued by non-financial companies rose for the first time in six weeks, increasing $7.4 billion to $219.2 billion.
Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as payroll and rent.
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