banker's acceptance

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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 ?
At the inception of the Federal Reserve in 1913, it was presumed that Federal Reserve assets would primarily consist of short-term privately issued paper, such as bankers' acceptances, trade acceptances, and bills of exchange.
We are pleased that our Telerate affiliate has been chosen by the IDA to manage a recognized benchmark index for bankers' acceptances in Canada," added Bashar Al-Rehany, president, BRIDGE Canada.
a floating rate based on bankers' acceptances plus a credit
9 million and bankers' acceptances of $430 million outstanding against the revolver.
95% per annum payable semi-annually until June 1, 2016; and at a variable rate equal to the Canadian dollar offered rate for three months' bankers' acceptances plus 1% thereafter until maturity on June 1, 2036.
This is achieved by investing in a low-risk and diversified set of money market securities, denominated in USD, such as certificates of deposit, time deposits, bankers' acceptances, asset-backed securities (including ABCP), commercial paper, repos, and medium-term notes.
The first issue was for $20 million principal amount of floating rate unsecured notes maturing January 15, 2007 and bearing interest at three month Canadian dollar bankers' acceptances plus 60 basis points.
8% per annum payable semi-annually until November 23, 2015; and at a variable rate payable quarterly equal to the Canadian dollar offered rate for three months' bankers' acceptances plus 1% thereafter until maturity on November 23, 2035.
In addition, PNC Bank provided Davos Chemical with letters of credit for foreign suppliers and bankers' acceptances for fixed- rate financing.