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The Federal Reserve's reaction to the Penn Central bankruptcy in 1970 marked a pivotal moment in American financial governance history. This paper delves into the Fed's extraordinary measures to avert a widespread financial crisis following the resulting collapse of the commercial paper market. We outline the crisis's progression, highlighting Penn Central's increasing troubles and the subsequent emergency actions by the Fed, led by chair Arthur Burns in mid-1970. A key focus of our analysis is the financial environment of the 1960s, marked by the growth of complex, intertwined, and increasingly global short-term credit systems, which introduced a new type of systemic risk. We argue that the Penn Central crisis represented the Federal Reserve's initial major intervention in response to this emerging systemic risk, expanding its traditional role as a lender of last resort to individual banks to a broader responsibility as a stabilizer of the entire financial system. The Fed pursued this new systemic guarantee by using moral suasion, encouraging banks to increase lending, and providing structural support to reinforce financial system stability, thereby establishing a new precedent in central banking history. Our study also explores the consequences of the crisis. Despite the successful management of the Penn Central crisis, this paper raises crucial questions about the potential moral hazard and the extensive impact of the Federal Reserve's landmark actions. We contend that reassessing the 1970 Penn Central crisis is essential for a better comprehension of the structure of American financial market governance and the Fed's evolving role in handling subsequent crises, including the Great Financial Crisis of 2008. [ABSTRACT FROM AUTHOR]

Effect of money market instruments on economic growth of Nigeria from 1993 to 2022 was investigated in this study. Research design adopted for this study is ex-post-facto. Data were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin to estimate the model. Multiple regression approach was employed to analyse impact of money market instruments on economic growth in Nigeria for the period of the study. From the empirical result obtained, the study conclude that money market enhanced development in Nigeria. It is recommended that CBN create appropriate monetary and fiscal measures which would develop money market for promotion of productive activities and investment thereby improve Nigeria development. [ABSTRACT FROM AUTHOR]

The implementation of binding credit agreements, especially in banking matters, generally uses an authentic deed drawn up by a notary as a perfect means of proof. The provision of credit followed by special guarantees has different characteristics depending on the type of collateral provided by the debtor. Therefore, the role of the Notary is not only limited to the credit agreement but also in the guarantee binding process. The purpose of this legal research is to determine the scope of duties, authorities and the role of a Notary in the implementation of credit agreement followed by a mortgage guarantee in the form of securities. This legal research is normative legal research. The data collection tool used was a literature study with due regard to primary legal materials in the form of laws and regulations and secondary legal materials, namely books, journals and other library materials related to this research. The results of the study show that securities that are used as a collateral for credit may be made with a pawn or fiduciary system depends on the object served by debtor. If the bond binding is carried out with the fiduciary system, the role of the Notary is very important considering that the fiduciary guarantee deed required to be made in the authentic deed. [ABSTRACT FROM AUTHOR]

This article explores the complex dynamics of financial innovation in early modern times, challenging linear models of temporal and spatial divisions that tend to shape our understanding of the evolution of financial systems. It supports the idea that innovation should be viewed as a non-linear and contextual process, involving diverse stakeholders and characterised by interactions and unexpected occurrences. The study focuses on the dissemination and trajectories of financial innovations, specifically the bill of exchange and its variation, the ricorsa , as well as the transferability and negotiability of commercial paper. It does so by investigating the interactions and exchanges between merchants and bankers from diverse backgrounds during the sixteenth-century Lyon fairs, using the archival records of one of the first Italian banks in Lyon (Salviati). The study reveals the mutual influence and acculturation among these agents and challenges the compartmentalisation of financial expertise. Through an analysis of transactions recorded in the Salviati bank's ledgers, the article highlights previously unknown uses of commercial paper by Southern merchant communities and discusses the factors that may have hindered the full-scale development of endorsement and discount in the Lyon trading networks, despite their potential benefits. The results provide insights into the intricate nature of financial innovation and the influence of structural and cultural factors on its development. [ABSTRACT FROM AUTHOR]

What drives short-term credit spreads: credit risk, liquidity risk, or both? We investigate this issue using the structural approach to credit risk modeling and a novel data set of secondary market transaction prices for Chinese commercial papers (CPs). In particular, we propose and test a structural model with jump risk and exogenous market illiquidity under which the predicted yield spreads can be decomposed into a credit component and a liquidity component. We find that credit risk and, especially liquidity risk, are important determinants of short-term yield spreads. Our model-based decomposition results show that, on average, credit risk and market liquidity account for about 25% and 52% of CP yield spreads, respectively. For comparison, we also examine the drivers of the US CP yield spreads using security-level data. We find that credit risk accounts for a small fraction of the observed yield spreads but liquidity contributes a much greater proportion. [ABSTRACT FROM AUTHOR]

Copyright of College of Law Journal for Legal & Political Sciences / Magallat Kulliyyat Al-Qanun Li-L-ulum Al-Qanuniyyat Wa-Al-Siyasiyyat is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal Of the College of Law /Al-Nahrain University is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Money is defined as any asset that is acceptable as a medium of exchange in payment for goods and services. Finance is a part of money and all the activities are related to obtain it and to use it effectively. Financial market is an area where the sources of finance are available in two format i.e. Long term & Short term. By understanding to these subjects and financial market, the further emphasis can be laid on to its sub-part i.e. money market (Short term). Every country with a monetary system of its own does have some kind of market in which dealers in short-term credit can buy and sell. It is a market of short-term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money. One of the major components or instrument of Indian Money Market is Commercial Papers. This paper examines the trend and growth of Commercial papers in Indian economy over a period of 10 years. It emphasize on how the share of this particular instrument has grown with respect to the changes in interest rates over the same period and to analyse the reasons behind such changes.

Commercial paper is of great potential as a ready‐made substrate to make battery separator due to superior electrolyte affinity of cellulose. Nevertheless, the direct utilization of commercial paper as a separator is impracticable because of its micro‐sized holes between coarse cellulose fibers, which might induce short circuits. Herein, a novel reinforced composite separator is proposed by modifying commercial paper (CP) with high‐dielectric polymer poly(vinylidene fluoride) (PVDF) via a vacuum filtration method. The paper substrate enables excellent electrolyte wettability and high ionic conductivity of the CP‐PVDF composite separator due to the superior electrolyte affinity of cellulose molecule. Meanwhile, the strong hydrogen bonds between F atoms in PVDF and H atoms in the ‐OH groups of cellulose endow the separator with high thermal stability and mechanical strength. Moreover, the CP‐PVDF exhibits outstanding interfacial compatibility toward Li metal anode and guarantees the prominent cycle durability of symmetric Li/Li cells up to 600 h. As a result, the LiFePO4/Li cells assembled with CP‐PVDF separator show dramatic rate performance with high discharge capacity of 113.7 mAh g−1, and prolonged cycle life at 5 C. This work indicates that the paper‐based composite membranes possess great potential for high‐safety and electrochemical performance batteries. [ABSTRACT FROM AUTHOR]

The paper examines the market microstructure - A descriptive study of the nature and structure of the Indian money market. For the empirical analysis we have studied each of the four sub-markets of the money market - Commercial Paper (CP), Certificate of Deposit (CD), Call rate (CMM)and T-Bills. Our paper looks at the qualitative aspects, the granular view of the Indian money market. It studies the overall trends, growth rates and index of interest rates of the four submarkets of the Indian money market. The paper clearly shows that the short-term interest rate follows almost the same pattern; breaks occur in a similar fashion. We attribute this decline to change in market microstructure which is a consequence to the liberalization of the money market. The growth analysis is done with the help of semi-log equations, structural breaks to study the overall growth rates for different markets. It is evident from the paper that on the whole, there has been a declining trend in the money market rates, with some differences between sub-periods. The overall and period-wise trends and growth rates also exhibit similar patterns amongst the four short-term interest rates, where all rates are falling. [ABSTRACT FROM AUTHOR]

Money is defined as any asset that is acceptable as a medium of exchange in payment for goods and services. Finance is a part of money and all the activities are related to obtain it and to use it effectively. Financial market is an area where the sources of finance are available in two format i.e. Long term & Short term. By understanding to these subjects and financial market, the further emphasis can be laid on to its sub-part i.e. money market (Short term). EVERY country with a monetary system of its own does have some kind of market in which dealers in short-term credit can buy and sell. It is a market of short-term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money. One of the major components or instrument of Indian Money Market is Commercial Papers. This paper examines the trend and growth of Commercial papers in Indian economy over a period of 10 years. It emphasize on how the share of this particular instrument has grown with respect to the changes in interest rates over the same period and to analyse the reasons behind such changes. [ABSTRACT FROM AUTHOR]

In this paper, we present the short-run and the long-run relationships among the financial assets of the money market funds, the commercial paper market, and the repurchase agreement market by undertaking a cointegration analysis of quarterly data over the 1985-2017 period. This was based on the empirical observation that the commercial paper and repo markets account for 50 percent of the assets of money market funds. The evidence suggests that there exists a common long-term cointegrating trend among these three components of the shadow banking system. Any disequilibrium in this long-run relationship among these variables is corrected by movement in the financial assets of money market funds. The Beveridge-Nelson decomposition from the estimated cointegrating relationship shows that the cyclical component of money market funds is large and captures huge swings in these markets during the financial crisis. We also find evidence of change in these dynamic relationships in the post-crisis period, where in addition to the money market funds, the commercial paper market also exhibits a tendency to correct for the disequilbrium. [ABSTRACT FROM AUTHOR]

Money market consists of financial institutions and dealers in money or credit who wish to generate liquidity. It is better known as a place where large institutions and government manage their short term cash needs. For generation of liquidity, short term borrowing and lending is done by these financial institutions and dealers. Money Market is part of financial market where instruments with high liquidity and very short term maturities are traded. Due to highly liquid nature of securities and their short term maturities, money market is treated as a safe place. Hence, money market is a market where short term obligations such as treasury bills, commercial papers and bankers acceptances are bought and sold. The money market is a key component of the financial system as it is the fulcrum of monetary operations conducted by the central bank in its pursuit of monetary policy objectives. It is a market for short-term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money. [ABSTRACT FROM AUTHOR]

Owing to their liquid nature and their presumed lack of risk, commercial papers have always played a key role in the portfolio of money-market funds. The latter perception was largely fuelled by the fixed NAV calculation method (USD 1) widely employed by market participants for the calculation of the daily net asset value of money market funds' shares.1 The economic crisis of 2007-2009 and the European sovereign debt crisis in 2010-2011, however, demonstrated that - in the lack of adequate regulation - commercial papers carry inherent macroeconomic threats in the course of the operation of international money and capital markets. The aim of the study is to give an overview of the regulatory changes affecting commercial papers and money market funds in the period of 2011-2016, with special regard to the possible effects of the changes on the state budget via money market funds in the United States. With the proliferation of asset-backed commercial papers, commercial papers lost not only their low-risk status, but also their unsecured nature. Indeed, in the absence of proper regulation money market funds built an enormous portfolio of such toxic assets during the crisis of 2007-2009, particularly in the United States. With the re-regulation of money market funds - by abolishing the fixed net asset value calculation method and by restricting investments to truly short-term and low-risk money market assets, the Securities and Exchange Commission (SEC) followed this process, and restored the status of money market funds as low-risk and high-liquidity investment vehicles. In the study the author uses quantitative analysis and comparative analysis to gauge the effect of the regulatory changes. [ABSTRACT FROM AUTHOR]

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing working capital and meeting short-term liabilities. It is one of the most important financial instruments that constitute a significant portion of issued debt securities in financial markets. Nevertheless, commercial paper, like many other conventional financial instruments, has been structured and issued in western financial markets and because of sharia regulations and conditions, it is not allowed to be issued in Islamic markets or for corporations that are committed to Islamic regulations. But Islamic rules and jurisprudence (fiqh) are flexible enough to permit the use of commercial paper based on various allowed contracts. In this paper, we try to develop models for structuring and issuing commercial paper, applicable to commercial corporations that comply with Islamic rules and regulations.

The commercial paper does not assume that prior legal relations between the dealers are established. Legal relations may arise for the first time on the occasion of dealing with the commercial paper. If the holder presents a commercial transfer to a bank for deduction, the bank performs the transaction required in return for transferring the ownership of the cheque by signing the back of the cheque, the bank becomes a creditor, which transfers the ownership of the cheque to another through the signature on the back of the cheque, in this case, the bank becomes a guarantor, i.e. debtor, and it is clear that the transfer of ownership of the cheque through the signature on the back of the cheque is subject to the rules of the law of exchange, and is free of the previous legal association between the person who transfers ownership of the cheque to another through the signature on the back of the cheque and between the person to whom ownership of the cheque is transferred

Among the various alternatives of shortterm financing, commercial paper is an important first choice debt instrument. This study makes an attempt to make a comparative analysis on the effect of financial crisis on the returns of commercial paper in India and America based on secondary data sources. The study depicts the behavior of rate of return and risks associated with commercial paper against the backdrop of the global financial crisis. A remarkable finding of the study is that as the Indian outstanding commercial paper market increases considerably, the US market experiences a sizeable decrease. [ABSTRACT FROM AUTHOR]