Foreign banks are back as major borrowers in the short-term U.S. commercial-paper market, according to Federal Reserve data released Thursday, as investors resumed lending to them after European banks passed stress tests last month.
Financial services' share of the $1 trillion commercial paper market has risen to its highest level since April, and foreign banks' borrowing has risen to its highest level since March, the data shows.
Foreign bank borrowing in the U.S. commercial paper market stands at $121.2 billion this week, up from $112.9 billion at the end of May. In the week ended June 2, foreign bank borrowings in the commercial paper market retreated by $5.3 billion, or 4.7%, to $106.6 billion, the Fed said.
