Piper Jaffray starts $300 million dollar commercial paper program
Piper Jaffray Companies plans to start a $300 million commercial paper program, the investment bank said in a regulatory filing on Wednesday.The program will in part fund Piper Jaffray’s securities portfolio and provide general working capital, the filing said.
Piper Jaffray, which caters to small and mid-size business customers, is recovering from five consecutive quarters of quarterly losses, beginning in the first quarter 2008 through first quarter 2009.
U.S. commercial paper down $1.7 billlion to lowest level in about 4 years
Editor’s Note: I disagree with Mr. Stone’s comment that the reduction in the commercial paper market is ”I think largely it is for other reasons,” with the Federal Reserve still the major lending in many of the financial markets. We can not say that it is for other reasons until all these bailout programs are retired and then we can see how these markets function under their own strength. My gut feeling is that this situation is getting worse by the day and that is why we will continue to have this intervention.
News (Reuters):
The U.S. commercial paper market contracted to its smallest in about four years as the global credit crisis and deep recession continued to erode it, analysts said.
For the week to April 22, the size of the U.S. commercial paper market, a key source of short-term funding for routine needs such as payroll at many companies, slipped by $1.7 billion to $1.472 trillion outstanding, from $1.474 trillion the previous week, Federal Reserve data showed on Thursday.
Banks must turn the credit taps back on, and quickly
The credit crisis is squeezing the life out of small business. How do I know? Well I’m the chief executive of the National Association of Commercial Finance Brokers, and my members raise capital for job-creating entrepreneurs who do not have access to the money markets.
In the past 18 months I have seen the pool of available cash dwindle as the folly of our major lenders has been revealed in all its gory detail.