Commercial paper is typically a cheaper option than a bank loan, and is mostly used by large companies with good credit ratings. Mr. Ramcharan: We have a liquidity shock where the cash flow that firms would normally bank on has just dried up completely. I can be assured that I can continue to access the commercial paper market, or if I have debt that is maturing in the commercial paper market, that I can roll it over. The commercial paper market is one piece of it, but it’s for big companies that are highly rated. What about other companies that don’t access the commercial paper market?

Source: Wall Street Journal March 18, 2020 00:00 UTC