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 ?
s] = Banker's acceptance (naira values) as a %age of GDP at current market price.
Time bill represents a banker's acceptance or bill of exchange that is not payable until some specific future time.
The funds drawn on the 364 day non-revolving credit facility will bear interest at varying margins based on Royal Bank of Canada's Canadian prime rate, United States base rate or banker's acceptance reference rate and will be secured by a general security agreement and first priority mortgage over all of the assets of the Company.
GMAC Residential Funding has also brought more conventional mortgage products, such as iAdjust (an adjustable rate mortgage that adjusts based on a Banker's Acceptance index) and iSecure (a fixed-rate offering), to the marketplace.
The interest paid on the credit facility varies with prime, LIBOR and Banker's Acceptance rates, plus a margin based on a performance price structure.