This article investigates the factors contributing to the dramatic decline in the commercial paper market and assesses whether the recent shrinkage is likely to continue.
Nonfinancial commercial paper is short-term unsecured debt issued by nonfinancial corporations, typically large industrial or service firms and utility companies.
The county issued commercial paper through a nonprofit company it formed called the Los Angeles County Capital Asset Leasing Corp.
In addition, a bank issued a letter of credit on the commercial paper, in effect promising to pay for the loan if the county defaults, said Ken Kurtz, a Moody's Investors Service bond analyst who follows Los Angeles County.
The banks want to discuss mergers and acquisitions, commercial paper
and securities issuance as well as other high-margin activities.
The current offering is the seventh issuance under the state GO extendible municipal commercial paper
program with the last occurring in December 2005.
The current offering is the sixth issuance under the state GO extendible municipal commercial paper
program with the last occurring in March 2004.
The 2005 series A notes are commercial paper
with original maturities from one day to 270 days from the original issue date of each note.
Verizon's liquidity is strong, as it has an undrawn $6 billion credit facility to back its commercial paper
Fitch has concurrently affirmed AIG's 'F1+' commercial paper
Fitch also affirms the 'F1+' rating on the tax-exempt standard municipal commercial paper
(CP) notes, series A, the tax-exempt extendible municipal CP notes, series B, and the taxable CP notes series C.
The commercial paper
rating of AIG is affirmed at 'F1+' by Fitch.
Fitch also lowers the commercial paper
rating of both entities to 'F3'.
At the same time, Fitch has affirmed the existing ratings of WellPoint and its subsidiaries, with the exception of the 'F2' short-term issuer and commercial paper
ratings of Anthem Holding Corp.