See commercial paper. Dresdner Kleinwort Wasserstein financial glossary
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See commercial paper Euroclear Clearing and Settlement glossary
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Commercial Paper. This is a short-term unsecured promissory note that is issued for a specified amount and matures on a specified date. CP is a negotiable instrument, typically in bearer form. CP, like CDs (Certificates of Deposit), are a means of raising working capital. In terms of funding costs, the issue of one or another should make no difference since both will produce comparable yields. However, CP tends to be issued with maturities of 30 days or less, to avoid competing with the CD market.
► See also Bearer Shares/Bearer Bonds, CD.
Financial and business terms. 2012.