The credit crisis of 2007 to 2009 largely left the market for commercial paper unaffected.

Question

Quizplus · Accepted Answer

The credit crisis of 2007 to 2009 had a significant impact on the market for commercial paper. Many investors, concerned about the risks of investing in these short-term debt instruments, pulled their money out of the market, causing a sharp decline in issuance and higher interest rates. This, in turn, made it more difficult and expensive for companies to access short-term funding, which contributed to the overall liquidity crisis of the period.

The Credit Crisis of 2007 to 2009 Largely Left the Market