When Safe Proved Risky: Commercial Paper during the Financial Crisis of 2007-2009

Article, Preprint OPEN
Marcin Kacperczyk ; Philipp Schnabl (2010)
  • Journal: Journal of Economic Perspectives, volume 24, issue 1 Winter, pages 29-50
  • Related identifiers: doi: 10.1257/jep.24.1.29
  • Subject:
    • jel: jel:G01 | jel:G12 | jel:G23 | jel:G11 | jel:G2 | jel:G32

Commercial paper is a short-term debt instrument issued by large corporations. The commercial paper market has long been viewed as a bastion of high liquidity and low risk. But twice during the financial crisis of 2007-2009, the commercial paper market nearly dried up a... View more
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