The Commercial Paper market is set to roll over a ton of debt over the next couple of weeks. According to this blog quoting newsweek:
The shaky U.S. credit markets will face a critical test over the next few weeks, as companies try to find buyers for hundreds of billions of dollars in short-term debt that is set to expire. Corporate borrowers are expected to struggle in refinancing their debts, and the repercussions may go far beyond the companies in question. …
The tightest squeeze may come in what’s known as the asset-backed commercial paper market. … About $417 billion worth of asset-backed commercial paper is scheduled to come due during the weeks of Sept. 10 and Sept. 17, or about half of the $959 billion market, according to Sherif Hamid, an investment-grade credit strategist at Lehman Brothers.
I think these images from the Fed, speak for themselves.
This in the midst of a week where big banks are trying to market billions of buyout debt and BSC, GS, LEH, and MS all announce earnings.
Could be a choppy week indeed. I am investigating SKF and IAI as a way to express a view.