Money Markets
Commercial Paper
Definition
What is Commercial Paper?
Short-term unsecured debt issued by a company.
Example in practice
How This Looks in Practice
A highly rated manufacturer issues 180-day commercial paper to fund working capitalCurrent operating assets minus current operating liabilities, with exact components depending on the analysis..
Keep learning
Related Terms
Money Markets
Treasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.
Money MarketsCertificate of Deposit
A time deposit or tradable bank instrument that pays interest over a stated term.
Money MarketsBankers' Acceptance
A time draft guaranteed by a bank, commonly used to finance trade.
Fixed Income StrategiesMaturity Ladder
A portfolio of debt instruments with maturities spread across regular intervals.