Commercial Paper

  • We must understand that we no longer have any reasonable basis for making any assumptions whatever about the range within which interest rates will fluctuate.
    • Financing the squeeze by issuing commercial paper is just about the most dangerous thing a life company can do.

—  Ernest J. Moorhead (Jack) – EJM

1981 01 – SOA – Financial Hazards of the Cash Value Life Insurance Business, by EJM The Actuary, Society of Actuaries – 2p

  • AIG found itself unable to obtain short-term or long-term financing in the public debt markets.
    • This, coupled with its inability to roll over commercial paper coming due, posed the most significant immediate threat to the company’s solvency.201 (p61)
    • 201 AIG Form 10-K for FY08, supra note 47, at 201.

2010 0610 – COP – Report – The AIG Rescue, Its Impact on Markets, and the Government’s Exit Strategy, June Oversight Report, Congressional Oversight Panel  —  [BonkNote]  —  337p

  • 1998 0401 – FRB – The Commercial Paper Market: Who’s Minding the Shop?, By Dusan Stojanovic and Mark D Vaughan – [link]