Companies Sold Commercial Paper to Boost Cash, JPMorgan Says

Short-term debt issued by corporations surged in April as companies sought to bolster their liquidity in the wake of economic uncertainty wrought by the Trump Administration’s tariff policies, according to strategists at JPMorgan Chase & Co.

Issuance of non-financial commercial paper swelled by $100 billion last month, which is above the monthly average of $27 billion seen from 2019 to 2024, excluding 2020, JPMorgan strategists led by Teresa Ho wrote in a note to clients on Friday, citing data from the Depository Trust & Clearing Corporation. At its peak, the gap between the highest-rated paper — known as Tier 1 — and T-bills stood at the widest level since August 2022. The spread to less credit-worthy paper — known as Tier 2 — reached its widest level since June 2023.