banker's acceptance


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Related to banker's acceptance: commercial paper, repurchase agreement, negotiable certificate of deposit

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 ?
The facility will bear interest at a floating rate tied to the prevailing Canadian dollar prime rate or banker's acceptance rate, and steps-down as MetroNet Communications achieves operating cash flow leverage benchmarks.
Certain conditions to the waivers continue during the forbearance period including the company's agreement that (a) interest and letter of credit fees will be paid monthly instead of quarterly, (b) commitments to make further credit extensions are suspended, and (c) outstanding amounts under the bank credit agreement cannot be continued as or converted into LIBOR or banker's acceptance rate loans.
government and federal agency obligations, CDs, banker's acceptance, time deposits of major financial institutions, commercial paper, short-term corporate obligations, taxable municipal securities, and repurchase agreements.
Additionally, the Bank's international experts provide customers with export financing, banker's acceptance financing, international collections and payment services.