The core of the money market consists of interbank lendingbanks borrowing and lending to each other using commercial paper, repurchase agreements and similar instruments.
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.
There is an inverse relationship between call rates and other short-term money market instruments such as certificates of deposit and commercial paper.
