Banking Industry Faces Fluctuating Market Conditions.
The bank failures in March have shaken the short-term lending market, also known as funding markets, which underpins the financial system. Funding-market activity fell to its quietest since the Covid-19 pandemic erupted. On two days in mid-March, less than $2 billion of commercial paper with maturities longer than 80 days was issued, according to Federal Reserve data. This is well below typical levels for the unsecured debt averaging around $8 billion of issuance a day.