The market for corporate borrowing via short-term IOUs expanded for the first time in four weeks, led by a rise in issuance from non-U.S. financial institutions.
The seasonally adjusted amount of U.S. commercial paper climbed $5.3 billion to $1.022 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. That’s the first rise since a $200 million increase for the period ended Feb. 27 and the highest level since then.
Commercial paper sold by overseas financial institutions increased for a third week, surging $9.6 billion to $223.2 billion, the highest level since the period ended Feb. 13. The amount issued by U.S.-based financial companies fell for a fourth week, dropping $3.1 billion to $304.8 billion, the least since the week ended Dec. 19, according to the Fed.
Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.