Financial Times FT.com

Banks bear strain of short-term debt market troubles

By Paul J Davies

Published: November 15 2007 21:52 | Last updated: November 15 2007 21:52

There is a big reason why the asset-backed commercial paper market has garnered so much interest in recent weeks.

It is not simply because the volume of this short-term debt in issue has shrunk so dramatically, nor is it because millions of ordinary savers have put their trust in supposedly safe money market funds, which turned out to have large exposure to this riskier paper.

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