Commercial paper

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Commercial paper

Short-term promissory notes either unsecured or backed by assets such as loans or mortgages issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less.

Commercial Paper

An unsecured, short-term debt security issued by a corporation. Commercial paper is usually issued at a discount from par, and is a popular investment with mutual funds. It usually is issued in large denominations (over $250,000) and has a maturity of less than 270 days, with most maturing within one or two months of issue. It is a highly liquid investment and forms part of the money market. It is often simply called paper.

commercial paper

A short-term unsecured promissory note issued by a finance company or a relatively large industrial firm. The notes are generally sold at a discount from face value with maturities ranging from 30 to 270 days. Although the large denominations ($25,000 minimum) of these notes usually keep individual investors out of this market, the notes are popular investments for money market mutual funds. Used interchangeably with the term paper. See also prime paper.

Commercial paper.

To help meet their immediate needs for cash, banks and corporations sometimes issue unsecured, short-term debt instruments known as commercial paper.

Commercial paper usually matures within a year and is an important part of what's known as the money market.

It can be a good place for investors -- institutional investors in particular -- to put their cash temporarily. That's because these investments are liquid and essentially risk-free, since they are typically issued by profitable, long-established, and highly regarded corporations.

References in periodicals archive ?
The 2005 series A notes are commercial paper with original maturities from one day to 270 days from the original issue date of each note.
3 million of general obligation bonds to repay four series of outstanding commercial paper notes issued in 1997 and 1998.
8 billion, including commercial paper balances of approximately $4.
Based on the current investment levels, which have been consistent over time, Vanderbilt would be able to fund the $299 million of outstanding variable-rate bonds and the full $675 million of commercial paper in the event that they were not able to be remarketed.
To limit Vanderbilt's exposure to the need for a significant liquidation of assets on any given day, the university has restricted the amount of commercial paper that may come due on any given day to $50 million.
If in the event AIG's ratings are lowered, based on current information, Fitch believes that ILFC's commercial paper rating would not go below 'F1'.
NEW YORK -- The Bank of New York, a global leader in securities servicing, has launched commercial paper trading capabilities through its premier short-term investing website, MoneyFundsDIRECT.
s (Atmos) short-term debt rating, which applies to its $600 million commercial paper program is affirmed by Fitch Ratings at 'F2'.

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