There is an inverse relationship between call rates and other short-term money market instruments such as certificates of deposit and commercial paper.
There was the equivalent of a bank run on the money market mutual funds, which frequently invest in commercial paper issued by corporations to fund their operations and payrolls.
Other funding channels -- such as the covered bond market, commercial paper, or asset-backed securities -- are also starting to look increasingly challenged.
The core of the money market consists of interbank lendingbanks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments.
