Monetary Policy Report submitted to the Congress on July 18, 2007, pursuant to section 2B of the Federal Reserve Act
Figure of selected components of net financing for nonfinancial corporate businesses, 2003-07
Data are plotted as both stacked bars and a curve and are expressed in billions of dollars at annual rates. The bars are semiannual for 2003 to 2005 and quarterly for 2006 and the first half of 2007. The stacked bars denote changes in net financing from commercial paper, bonds, and bank loans. Net financing from bonds is the largest of the three components in most years, followed by net financing from bank loans, and then commercial paper. The bond component is large in the first half of 2003, moderately positive over the next 2-1/2 years, and then large again starting in the first quarter of 2006.
Net financing from bank loans is moderately negative in the two halves of 2003, near zero in the two halves of 2004, and then moderately positive in the remainder of the periods. Net financing from commercial paper is near zero in all periods other than the fourth quarter of 2006, in which it is moderately positive. The curve is quarterly and denotes the sum of net financing from the three components. The curve dips from roughly $100 billion in the first two quarters of 2003 to about zero in the third quarter and roughly negative $100 billion in the fourth. The curve then fluctuates between zero and $200 billion through the fourth quarter of 2005 and then fluctuates between $300 billion and a little over $400 billion through the second quarter of 2007.
Note: The data for the components except bonds are seasonally adjusted. The data for the sum of selected components are quarterly. The data for 2007:Q2 are estimated.
Source: Federal Reserve Board; Securities Data Company; and the Federal Financial Institutions Examination Council, Consolidated Reports of Condition and Income (Call Report).