One of the backbones of finance is short-term, unsecured loans to corporations known as commercial paper. These loans range from a few days to a few months in duration. They pay current expenses such as inventory and payroll. Increasing levels of CP suggests stronger business.
These numbers from the NY Fed are good news for the stock market. You can follow the CP market at http://www.federalreserve.gov/releases/cp/
Weekly (Wednesday) levels
Nov. 2 $ 979.7
Nov. 9 $ 967.7
Nov. 16 $ 999.6
Nov. 23 $ 999.7
Nov. 30 $1,002.1
These numbers from the NY Fed are good news for the stock market. You can follow the CP market at http://www.federalreserve.gov/releases/cp/
Weekly (Wednesday) levels
Nov. 2 $ 979.7
Nov. 9 $ 967.7
Nov. 16 $ 999.6
Nov. 23 $ 999.7
Nov. 30 $1,002.1
2 comments:
See AGO-DEC 2010, Commercial paper went down and stocks went up.....
It´s not a good indicator, It´s depends on QE and Money Supply.
It´s my opinion.
Hagen
You're right...CP isn't always a perfect indicator of the stock market. However, it probably relates to supply and demand for funds in business.
Newly-created money first goes to reserves at the Fed rather than directly into the market.
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