April 18 (Bloomberg) -- The market for corporate borrowing through short-term IOUs contracted for the second time in three weeks, led by a decline in issuance from financial institutions.
The seasonally adjusted amount of U.S. commercial paper fell $6.2 billion to $1.016 trillion outstanding in the week ended yesterday, the Federal Reserve said today on its website. The market has declined from a 17-month high of $1.133 trillion in the period ended Jan. 16.
Commercial paper sold by non-U.S. financial entities fell for the first time in six weeks, declining $4.4 billion to $232.4 billion outstanding, while the amount issued by U.S.- based banks fell $3.5 billion to $298.1 billion, erasing most of the previous week’s rise, according to the Fed.
Corporations sell commercial paper, typically maturing in 270 days or less, to fund everyday activities such as rent and salaries.
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