Shortterm, unsecured discount DEBT securities issued by highly rated financial companies (as FINANCIAL PAPER) and industrial companies (as INDUSTRIAL PAPER). Although most CP is unsecured, there is also a market for assetbacked CP and LETTER OF CREDITbacked CP. In the US market CP maturities range from overnight to 270 days, while in the EUROMARKETS maximum maturity may extend to 360 days; the most common maturities in both markets are in the 14 to 30 day sector. Most CP is issued via DEALERS in the form of BEARER SECURITIES, although issues of REGISTERED SECURITIES are possible. In the US market it is common for CP programs to be partially backed by SWINGLINES so that issuers can access funds in the event they are unable to roll over their maturing notes. See also EURO COMMERCIAL PAPER.
What is COMMERCIAL PAPER (CP)?
Featuring Black’s Law Dictionary
Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.
- How Long is a Life Sentence?
- What is Entrapment?
- A Guide to the Types & Classes of Bankruptcy
- A Simple Guide to Medicare vs Medicaid
- What are the Miranda Rights?
- Property Management Law
- How Arbitration Works
- What is the Fourth Amendment?
- How To Start a Sole Proprietorship
- What Does Emancipation Mean?
- What Is A Police Welfare Check?
- Best Way to Find Someone in Jail for Free
- How to Transfer a Car Title When The Owner Is Deceased
- How To Find A Name & Address Using A License Plate Number
- What Can You Do At 18 Legally?
- Best Way to Write a Professional Letter to a Judge
- Why Do Policemen Touch Your Tail Light When They Pull You Over?
- How To Find An Inmate’s Release Date
- Signing a Letter on Someone Else’s Behalf
- How Do You Look up License Plate Numbers?