Banks return to dominate sovereigns in CP but euro/dollar basis swap crucial for future.

The article reports on the dominance of financial institution deals in the commercial paper (CP) market in October 2011 and the negative effect of a widening of the euro/dollar swap on sovereigns, supranationals and agencies (SSA), according to dealers. Dealogic noted that SSA contributed 25% to the total monthly issuance. The role of policymakers in financial institutions group (FIG) performance is cited. There was a 14% reduction in the exposure of U.S. money market funds to European banks.