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

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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

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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

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( 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

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commercial paper commercial paper ➔ paper

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   ► See CP.

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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.