Google Leading a Revival in Commercial Paper: Credit Markets
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Google Inc., owner of the most popular Internet search engine, and Germany’s Merck KGaA are leading a revival in commercial paper as nonfinancial companies grab the biggest share of the $1.1 trillion U.S. market from banks since 2002 amid lower borrowing costs.
Industrial companies have $151 billion of debt typically due in 270 days or less, up 47 percent this year and 14 percent of the total outstanding, seasonally adjusted Federal Reserve data show. Google, based in Mountain View, California, started a commercial paper program last month for as much as $3 billion, while Merck helped fund its acquisition of Millipore Corp. with the debt.