The U.S. market for corporate borrowing through commercial paper expanded for a ninth week, reaching the highest level in 15 months.
The seasonally adjusted amount of commercial paper rose $7.3 billion to $1.066 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the longest stretch of advances since May 2011 and the highest level since September 2011.
Commercial paper sold by domestic financial institutions rose for the first time in three weeks, increasing $7.4 billion to $309.5 billion outstanding, while IOUs issued by non-financial U.S. companies increased $2.8 billion to $168.2 billion, the highest level since June.
Borrowing among financial firms based outside the U.S. declined $2.4 billion, the first drop in five weeks, to $217.2 billion, and issuance by foreign, non-financial companies decreased $1.9 billion, the most since September, to $51.1 billion.
Businesses sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as payroll and rent.