Commercial paper is an unsecured and discounted promissory note issued to finance the short-term credit needs of large institutional buyers banks, corporations and. Commercial paper a written instrument or document such as a check, draft, promissory note, or a certificate of deposit, that manifests the pledge or duty of one. Why is the federal reserve establishing the cpff the commercial paper market has been under considerable strain in recent weeks as money market mutual funds and. Maturities on commercial paper rarely range any longer than 270 days the debt is usually issued at a discount, reflecting prevailing market interest rates. Definition of commercial paper: an unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts. Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of not more than 270 days commercial paper is a money-market.
Definition of commercial paper in the financial dictionary - by free online english dictionary and encyclopedia what is commercial paper meaning of commercial paper. Who invests in commercial paper commercial paper is generally purchased by investors seeking a short-term liquid security the large number of issuers, short-term. Commercial paper is issued by corporations to fund operating expenses and comes with a fixed interest rate and a maturity of less than 270 days learn more.
Commercial paper is an unsecured, short-term loan used by a corporation, typically for financing accounts receivable and inventories it is usually issued at a. 30 journal of economic perspectives in august 2007 to $745 billion in august 2008 other categories of commercial paper remained stable during this period. News about commercial paper commentary and archival information about commercial paper from the new york times.
Bonsaii evershred pro 3s23 heavy duty 14-sheet cross-cut paper/cd/credit card shredder, 6 gallons wastebasket with 4 casters and 120 minutes running time, black. Define commercial paper: short-term unsecured discounted paper usually sold by one company to another for immediate cash needs. Commercial paper (cp) consists of short-term, promissory notes issued primarily by corporations maturities range up to 270 days but average about 30 days.