Asset-Backeds Pay Big.

The article reports that interest rates on 30-day asset-backed commercial paper increased once more on December 6, 2007 to 6.25% from 6.00% on December 5. To obtain short-term financing, companies utilize the asset-backed sector of the commercial paper market. Rates rise in December yearly as issuers lock in financing that will last into the following year. The Federal Reserve reported that the U.S. commercial paper market decreased by $10.2 billion within the week with the asset-backed commercial paper contributing to all of the reduction.