Commercial Paper Freeze Up

WSJ:

Nearly two weeks after the Federal Reserve announced it would step in to support commercial paper, investors are still uncertain whether it will be enough to jump-start the $1.45 trillion dollar debt market.

The Federal Reserve's facility, which becomes operational on Monday, Oct. 27, will allow highly rated companies to tap the government for three-month loans that are crucial to their daily operations. This is good news for cash-strapped companies that have been struggling for more than a month to find financing for longer than just one day.

We'll see how rates react to this new facility.

Source: Federal Reserve