Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Aquilina
Author-Name: Andreas Schrimpf
Author-Name: Karamfil Todorov
Title: CP and CDs markets: a primer
Abstract: Commercial paper (CP) and certificates of deposits (CDs) are important short-term funding instruments for both financial and non-financial entities. We describe the origins and evolution of these markets in major jurisdictions. We show that money market funds (MMFs) are still significant as investors in CP and CDs, although their footprint has shrunk in response to stricter regulation. Various players have filled the gap left by MMFs, with non-financial companies and banks being particularly important in Japan, and non-bank financial institutions in the United States. Historically, US MMFs' absorption of short-term paper has tended to fall during stress episodes, creating strains for issuers in search of dollar funding, such as European banks.
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2309e.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2309e.htm
File-Format: text/html
Year: 2023
Month: September
Classification-JEL: G15, G23, G28
Handle: RePEc:bis:bisqtr:2309e