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 ?
Enterprises fund their activities partly by borrowing from financial undertakings and partly by issuing bonds, notes and short-term paper. Whether bonds, notes and short-term paper should be classified as fixed-rate loans is debatable, but the majority of these loans are usually extended with a fixed coupon rate.
In millions of NOK 30.06.2004 30.09.2004 31.12.2004 Cash 4 633 4 390 4 649 Deposits with Norges Bank 18 046 29 768 37 017 Deposits with Norwegian banks 32 390 21 230 18 383 Deposits with foreign banks 54 376 25 867 27 174 Treasury bills 7 280 5 074 6 451 Other short-term paper 13 626 11 759 8 429 Government bonds etc.
Short-term paper has spent another week largely unmoved.
Analysts said tendency of banks to park money into short-term papers indicated the persistent monetary tightening policies in times to come.
Experts highlight NIMs also include income from investments, where banks have moved towards short-term papers during 2017, offering lower yields than long-term bonds.
The rise in yields, however, has a limited impact upon schemes that invest in short-term papers. That is why returns from liquid and ultra short-term funds have not been affected much.
Portugal and Greece have continued to go to the market to sell short-term papers during their bailout programmes.
Analysts believe the renewed interest in short-term papers to be a sign of heightened expectations of continuing aggressive rate reversals by the SBP, especially as inflation continues gather pace along with fears of another potential devaluation in in the coming months on the cards.
The auction for Market Treasury Bills gathered over Rs 738 billion bids, mostly for short-term papers. In response to the State Bank of Pakistan's tender for the sale of 3-month, 6-month and 12-month Government of Pakistan Market Treasury Bills (MTBs), heavy participation has been seen by primary dealers and overall Rs 738.679 billion with a realised amount of Rs 718.842 billion bids were received.
The rate would be aligned with other short-term papers issued by NBAD, such as Euro-CP or London CD.
The European Financial Stability Facility (EFSF) has sold just under 2 billion worth of three-month bonds in its first ever auction of short-term papers ever in a bid to raise extra cash to fund its bond buying and new lending programmes.

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