commercial paper

Unsecured, short-term promissory notes issued by corporations for specific amounts and with specific maturity dates. Firms with lower ratings or firms without well-known names usually back their commercial paper with guarantees or bank letters of credit. Commercial paper may be sold on a discount basis or may be interest bearing. Terms can be as short as 1 day and usually do not exceed 270 days. American Banker Glossary
————
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. They are usually sold, like Treasury bills, at a discount. Bloomberg Financial Dictionary
————
Borrowing in the form of short term paper issued by companies. Also known as CP or ECP ( Euro commercial paper). Usually redeemable at par value and pays no interest. Hence it is issued and trades at a discount. Dresdner Kleinwort Wasserstein financial glossary
————
( CP) Euroclear Clearing and Settlement glossary
Loan in the form of short term paper issued by companies. Usually redeemable at par value and pays no interest. Euroclear Clearing and Settlement glossary
See Euro commercial paper. Euroclear Clearing and Settlement glossary

* * *

commercial paper commercial paper paper

* * *

   ► See CP.

* * *

commercial paper UK US noun [U] FINANCE
loans that a company takes out for a short period of time from investors who have no security (= property that can be taken if they do not pay back a loan): »

Without access to commercial paper, companies struggle to pay salaries and buy supplies.


Financial and business terms. 2012.

Look at other dictionaries:

  • commercial paper — see paper Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. commercial paper …   Law dictionary

  • Commercial paper — Commercial Com*mer cial, a. [Cf. F. commercial.] Of or pertaining to commerce; carrying on or occupied with commerce or trade; mercantile; as, commercial advantages; commercial relations. Princely commercial houses. Macaulay. [1913 Webster]… …   The Collaborative International Dictionary of English

  • commercial paper — /ingl. kəˈmYːʃəlˌpeɪpə(r)/ [propr. «carta (paper) commerciale (commercial)»] loc. sost. f. inv. (econ.) cambiale finanziaria …   Sinonimi e Contrari. Terza edizione

  • commercial paper — ☆ commercial paper n. 1. negotiable instruments, as bills of exchange, used regularly in the course of business 2. Finance short term promissory notes issued by large corporations and sold to investors either directly by the issuer or through… …   English World dictionary

  • Commercial paper — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Commercial paper — Short term unsecured promissory notes 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. The New York Times Financial Glossary * * * commercial paper …   Financial and business terms

  • commercial paper — A relatively low risk short term (maturing at 60 days or less in the US but longer in the UK) unsecured form of borrowing. Commercial paper is often regarded as a reasonable substitute for Treasury bills, certificates of deposit, etc. The main… …   Big dictionary of business and management

  • commercial paper — Negotiable instruments, drafts, checks, certificates of deposit, and promissory notes. The term also includes bearer bonds where such are not specifically excluded from the classification by statute. 11 Am J2d B & N § 8. The Uniform Commercial… …   Ballentine's law dictionary

  • Commercial Paper — An unsecured, short term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt… …   Investment dictionary

  • commercial paper — A relatively low risk short term (maturing at 60 days or less in the US but longer in the UK) unsecured form of borrowing. Commercial paper is often regarded as a reasonable substitute for Treasury bills, certificates of deposit, etc. The main… …   Accounting dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.