Last week I posed the question "Is the Commercial paper purge over?" The answer would seem to be, not quite. Whilst not reaching the same levels of the month of August where an average of more than $70 billion per week of Commercial paper disappeared. A still size-able $48 billion was not rolled over in the week to September 19th.

The biggest move was in Financial paper which lost -$32 billion, Asset backed paper lost a further -$15.6 billion while Non- Finanical paper was virtually unchanged losing -$0.9 billion.

Since the peak at the end of July a total of $356 billion had been wiped from the Commercial paper market. To put this in perspective the market for Commercial paper has been reduced to the levels of September 2006. Not a disaster by any means.

Of more interest is where the weaker players that have been forced out of the market go to get funding? Wherever they go you can bet that they won't receive as attractive terms that they have enjoyed in recent times.