Commercial paper

How it is used

Use for a money-market instrument; maturity limits and issuance rules vary by market.

Example sentences

1. The company issued commercial paper to fund seasonal inventory purchases.

   Short-term issuance bridges an operating cash requirement.

2. Treasury monitored the commercial paper programme's upcoming maturities.

   Frequent maturities require attention to repayment or replacement funding.

Common collocations

• commercial paper programme
• issue commercial paper

Related terms

• working capitalThe money a business has available for its daily operations, calculated as current assets minus current liabilities.
• maturityThe date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.

More terms: Treasury & Markets

• treasury
• yield
• securities
• derivative
• forward contract
• swap
• repo
• clean price
• dirty price
• duration
• convexity
• initial margin