Financial Times FT.com

US commercial paper locks up as market shrinks $95bn in a week

By Aline van Duyn in New York and David Oakley in London

Published: October 3 2008 03:00 | Last updated: October 3 2008 03:00

Investors have taken record amounts of money out of the commercial paper market, reducing short-term funds for even the highest-quality companies.

With stress in the financial system growing, the US commercial paper market shrank during the week that ended October 1 by the biggest amount since the Federal Reserve began to track it in 2001.

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