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Commercial paper market suffering.(Business)
- Article from:
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The Virginian Pilot
- Article date:
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August 17, 2007
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Copyright informationCOPYRIGHT 2007 The Virginian Pilot-Ledger Star. All rights reserved. Reproduced with the permission of the Dialog Corporation by Gale Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: DAN SEYMOUR
By Dan Seymour
The Associated Press
NEW YORK
Countrywide Financial Corp.'s move to take $11.5 billion in long-term bank loans points to emerging but serious troubles in the commercial paper market, which thousands of companies have relied on to finance their operations.
A key segment of this $2.13 trillion market has suffered an exodus of buyers, as investors decide how much risk they are willing to stomach. Stung by decaying credit quality, investors have soured on many of the mortgage financing markets where companies such as Countrywide raise money.
"Commercial paper" is a broad term that refers to bonds companies sell to ...