Discussion Paper

Dealer Intermediation in the Primary Market of Commercial Paper


Abstract: The commercial paper (CP) market is an important source of short-term funding for highly-rated financial and nonfinancial firms, with over $1 trillion in outstanding assets. The Global Financial Crisis in 2008 and the COVID-19 crisis in March 2020 both demonstrated the fragility of the CP market, which seized up in both crises and only recovered following interventions from the Federal Reserve in the form of several liquidity facilities.

https://doi.org/10.17016/2380-7172.3213

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2022-10-07

Number: 2022-10-07