JPMorgan Chase: Multiple companies are selling commercial paper to increase cash

Wallstreetcn
2025.05.05 18:13

JPMorgan Chase strategists stated that due to the economic uncertainty caused by the Trump administration's tariff policies, companies are seeking to enhance liquidity, leading to a surge in short-term debt issuance by corporations in April. The team of JPMorgan Chase strategists, led by Teresa Ho, cited data from the Depository Trust & Clearing Corporation (DTC) indicating that the issuance of non-financial commercial paper increased by $100 billion last month, significantly higher than the average monthly issuance of $27 billion from 2019 to 2024 (excluding 2020). At peak times, the spread between the highest-rated paper (known as Tier 1 bonds) and Treasury bills reached its widest level since August 2022. The spread between lower-rated paper (known as Tier 2 bonds) reached its widest level since June 2023

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