banker's acceptance

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Related to Banker's Acceptances: commercial paper, Treasury bills

Banker's acceptance

A short-term credit investment created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.

Banker's Acceptance

Short-term debt obligations that are secured by banks. That is, a bank promises to pay a creditor if a borrower defaults. It is also called a documented discount note.

banker's acceptance

A short-term credit instrument created by a nonfinancial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market on the basis of the credit quality of the guaranteeing banks. These instruments have become a popular investment for money market funds. Also called acceptance.
References in periodicals archive ?
Accounts receivable collected with banker's acceptances
ACBS enables us to give our managers prompt and comprehensive information about lending relationships, including banker's acceptances, letters of credit and commercial credit arrangements.
8 percent of total loans and banker's acceptances, which is slightly above the composite ratio of 2.