jcole21 Wrote: ------------------------------------------------------- > Maybe it’s a supply/demand constraint - there is > simply more demand for these products (these > clients are less inclined to use substitutes like > bonds, commercial paper, or other alternative > investments that individuals will use so rates > must be higher for them?) so firms receive lower > rates? I’m not sure why, but it certainly is the > case. Thanks for the reply jcole21, I guess to conclude no one hear really has a definitive/text book answer as to why personal products of the same aggregate value and term to maturity receive higher yields then commercial products
the interbank money market does not work as it used to, banks need to get this liquidity and keep it. the liquidity from retail is more stable than from a corporate.