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commercial paper
(redirected from Short-Term Paper)

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.01 sec.
commercial paper, type of short-term negotiable instrument, usually an unsecured promissory note, that calls for the payment of money at a specified date. Because it is not backed by collateral, commercial paper is usually issued by major firms whose credit-rating is so good that their notes are immediately accepted for trading. The notes are sold at a discount and mature in from three to six months. Commercial paper is an important source of cash for the issuing firm; it supplements bank loans and is usually payable at a lower rate of interest than the prime discount rate. Strictly speaking, it includes only those instruments that are used in commerce in place of money, as distinguished from paper used in investment, personal, estate, speculative, and public transactions. In addition to promissory notes, commercial paper may include drafts, bills of exchange and checks, acceptances, bills of lading, warehouse receipts, orders for delivery of goods, and express orders. See. N. D. Baxter, The Commercial Paper Market (1969); Steve H. Nickles, Commercial Paper (1988).


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Consumers, too, are showing strong preference for short-term paper when they are looking for places to park cash, said Colby, who indicated credit unions will see lower demand for longer-term certificates of deposit and greater demand for highly liquid instruments such as money market accounts.
lt;p>According to the Economist Intelligence Unit, the Saudi fixed-income security market consists of short-term paper issued by the Treasury (Treasury bills), with a maturity of up to one year, and bonds issued by the government through SAMA, which range in maturity from two to 10 years.
[GRAPHIC OMITTED] [GRAPHIC OMITTED] The issuance of very short-term paper dropped dramatically with the new source of longer-term funding and stayed low as the longer-term issues held began to roll over in late January.
 
 
 
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