Monday, January 05, 2009

Bernanke’s Nightmare?: Commercial Paper January 5 2008

Something has changed with Commercial Paper rates… either this is some portion of the Feds CPFF program kicking in or something else but the rates have come down dramatically in the last two reported days.

The spread now stands at 289 basis points… still wildly elevated but much better than the 615 of less than a week ago.

It will be interesting to see what unfolds….