UPDATE 1-U.S. commercial paper market falls below $1 trln

(Recasts lead paragraph, adds details from latest data)

NEW YORK, Dec 16 (BestGrowthStock) – The size of the U.S.
commercial paper market shrank below the $1 trillion mark in
the latest week, as companies issued fewer of these short-term
debt toward year-end, Federal Reserve data showed on Thursday.

The market contracted for a seventh consecutive week on a
seasonally adjusted basis in the week ended Dec. 15, while not
seasonally adjusted data showed a steadier market.

On a seasonally adjusted basis, the commercial paper
market, which companies tap for cash to fund payrolls,
inventories and other daily operations, shrank by $26.2 billion
to $981.7 billion outstanding.

Not adjusted for seasonal factors, the CP market rose to
$1.042 trillion, up $4.7 billion from the previous week.

Some analysts said the Fed’s seasonal adjustments have
become skewed in the aftermath of the global credit crisis more
than two years ago.

Still the Fed’s seasonally adjusted data showed another
broad decline in commercial paper issuance.

Unsecured short-term IOU’s from financial companies
decreased by $16.4 billion in the latest week, while unsecured
CP outstanding issued by non-financial companies dipped $1.4
billion from the prior week.

Asset-backed commercial paper issuance fell by $9.6 billion
on a seasonally adjusted basis to $357.3 billion in the latest
week.
(Reporting by Richard Leong; Editing by Theodore d’Afflisio)

UPDATE 1-U.S. commercial paper market falls below $1 trln