BNET Business Dictionary

Business Definition for: Commercial Paper

  • an unsecured short-term loan note issued by companies and generally maturing within nine months

Additional Resources

Commercial Paper, Corporate Finance, and the Business Cycle
High credit quality is a requirement for entry into the commercial paper market, but long-term credit quality bond rating is not a sufficient statistic for short-term quality. These characteristics allow firms to issuenear-riskless short-term debt and supply a near-money asset to themarket, thereby reducing their interest costs by the amount...
Tags: Commercial Paper, Finance, Credit Quality
White papers 2000-03-03
Increase in Commercial Paper Issuance Is Positive Sign for Corporate Growth
The Federal Reserve released data showing a $67 billion increase in commercial paper outstanding this week. This is the largest weekly expansion in almost a year. Growth in CP issuance indicates more favorable borrowing conditions for corporations and signals a positive trend for corporate growth. The rise in issuance is...
Tags: US Market, Finance Banter
External links 2009-10-09
A.M. Best Assigns Rating to Chubb Corporation's New Commercial Paper Program
OLDWICK, N.J. -- A.M. Best has assigned a commercial paper rating of AMB-1+ to The Chubb Corporation's Chubb (NYSE:CB) (Warren, NJ) new 4(2) commercial paper program, effective July 15, 2005 and has withdrawn the commercial paper rating of AMB-1+ previously assigned to the 3a3 program of its subsidiary, Chubb Capital...
Tags: A.M. Best Co., Chubb Corp., commercial paper
Research articles 2005-07-18
Securitization options blossom. (asset-backed commercial paper) (includes related article on Federal Agricultural Mortgage Corp.)
Asset-backed commercial paper is a popular form of securitization and increasing numbers of banks are offering the service to satisfy client demand. Residential mortgages made up the majority of asset-backed commercial paper in the past, but the definitioAsset-backed commercial paper is a popular form of securitization and increasing numbers of...
Tags: asset, commercial paper, securitization
Research articles 1993-08-01
CHINA SIGNS EURO-COMMERCIAL PAPER CONTRACT WITH SBC WARBURG, CITICORP
AsiaInfo Services 05-07-1996 China Signs Euro-Commercial Paper Contract With SBC Warburg, Citicorp CHINA, May 07, AsiaInfo Services, Inc -- China International Trust and Investment Corp CITIC signed a US$ 100 million Euro-commercial paper p AsiaInfo Services ...
Tags: Citicorp
Research articles 1996-05-07
DundeeWealth Reduces Exposure to Asset-Backed Commercial Paper
DundeeWealth Inc. ("DundeeWealth" or the "Company") (TSX: DW) announced today that it has taken steps to reduce its exposure to asset-backed commercial paper. The $787 million of general commercial paper recorded in recent filings of the Corporation's June 30 consolidated statements is reduced by nearly $400 million through sales...
Tags: asset, Bank of Canada
Research articles 2007-08-22
Fabege AB expands commercial paper programme to SEK5bn
NORDIC BUSINESS REPORT-22 September 2006-Fabege AB expands commercial paper programme to SEK5bnC1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com The Swedish property company Fabege AB said on Friday (22 September) that it has decided to expand the framework of its SEK4bn commercial paper programme to SEK5bn. Fabege said that the original...
Tags: Fabege AB
Research articles 2006-09-22
Amcor's US$200 Million Euro-Commercial Paper Program
MELBOURNE, Australia--BUSINESS WIRE--November 21, 1996--Amcor Limited (NASDAQ:AMCRY) announced today that it has arranged a new US$200 million Euro-Commercial Paper and Medium-Term Note program in Hong Kong. The new program replaces and expands the existing US$115 million commercial paper facility which matures in December 1996 and now allows...
Tags: Amcor Ltd.
Research articles 1996-11-21
American Water Works Announces Creation of Commercial Paper Program
Business Editors VOORHEES, N.J.--BUSINESS WIRE--Oct. 31, 2000 American Water Works Company, Inc., (NYSE:AWK) announced today that on October 30, 2000 the Company's financing subsidiary, American Water Capital Corp. AWCC, issued almost $250 million from a $600 million commercial paper program. This was the first commercial paper issued...
Tags: American Water, Company
Research articles 2000-10-31
Issues and recommendations regarding Commercial Paper settlement practices
This article is related to commercial papers that are related to equity. The Bond Market Association and The Depository Trust & Clearing Corporation The Bond Market Association and The Depository Trust & Clearing Corporation are jointly issuing this Discussion Paper3 regarding the settlement of U.S. commercial paper CP and...
Tags: Commercial Paper
White papers 2003-03-01
Banks' Advantage in Hedging Liquidity Risk: Theory and Evidence from the Commercial Paper Market
This paper argues that banks have a unique ability to hedge against market-wide liquidity shocks. Deposit inflows provide funding for loan demand shocks that follow declines in market liquidity. Consequently, one dimension of bank specialness' is that banks can insure firms against systematic declines in market liquidity at lower cost...
Tags: Bank, Theory, Commercial Paper, Liquidity, Investment, Financial Services, Finance
White papers 2003-01-01
Altering Investment Decisions to Manage Financial Reporting Outcomes: Asset-Backed Commercial Paper Conduits and FIN 46
This paper evaluates the manner in which sponsors of highly leveraged Asset-Backed Commercial Paper ABCP conduits responded to FASB Interpretation No. 46 (FIN 46) Consolidation of Variable Interest Entities an Interpretation of ARB No. 51. By matching commercial paper investors with corporations seeking liquidity, ABCP sponsors facilitate a significant amount...
Tags: Financial Reporting, Financial, Conduit, University Of Chicago, Commercial Paper, ABCP, Financial Accounting, GAAP, Financial Statements, Finance
White papers 2005-03-01
Bank of America Arranges U.S. Commercial Paper Program for Banco Rio De La Plata
BUENOS AIRES, Argentina--BUSINESS WIRE--Jan. 29, 1997-- BankAmerica and Banco Rio de la Plata S.A. announced the successful signing of a one-year US$270 million U.S. commercial paper program for Banco Rio. This program is a renewal and increase of Banco Rio's first U.S. commercial paper program which was launched in...
Tags: Bank of America Corp.
Research articles 1997-01-29
US$120 Million U.S. Commercial Paper Program Arranged by Bank of America for Banorte
MONTERREY, N.L., Mexico--BUSINESS WIRE--Aug. 9, 1995--Bank of America and Banco Mercantil del Norte, S.A. Banorte today announced the successful syndication of a new, one-year US$120 million U.S. commercial paper program for Banorte. Headquartered in Monterrey, Banorte conducts commercial banking operations in 11 Mexican states, with a strong presence in...
Tags: Bank of America Corp., commercial paper
Research articles 1995-08-09
Commercial Paper Funding Facility: So Far, So Good
John Jansen submits: The Federal Reserve opened the Commercial Paper Funding Facility for business today. It came off pretty much without a hitch. This facility buys commercial paper from issuers such as GE and will hold that paper. Today funding was about 70 basis points through Libor which is...
Tags: Federal Reserve Board, Commercial Paper, Seeking Alpha, John Jansen, General Electric Co., Financial
External links 2008-10-27
Financial Roundup: Citi Ponders Future, Deflation Worries, Commercial Paper Up, China Promises Non-Polluting Lending
Citi ponders future â€" Its stock price plunging, CitiGroup Inc. is considering selling itself or its parts. The venerable bank claims it has a strong capital and liquidity position but its stock has slipped 50 percent this week. [Source: The Wall Street Journal] Deflation fears rise â€"...
Tags: Bank, Financial, Commercial Paper, Deflation, Citigroup Inc., Currency & Foreign Exchange, Finance, Peter Galuszka
Blog posts 2008-11-21
Kemira Oyj signs EUR600m commercial paper programme
NORDIC BUSINESS REPORT-8 April 2005-Kemira Oyj signs EUR600m commercial paper programmeC1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com Finnish chemical industry group Kemira Oyj said on Thursday (7 April) that it had signed a domestic EUR600m commercial paper programme. The programme would replace the company's old EUR150m programme, according to Kemira....
Tags: Kemira Oyj
Research articles 2005-04-08
Trelleborg AB establishes commercial-paper programme
NORDIC BUSINESS REPORT-28 June 2005-Trelleborg AB establishes commercial-paper programmeC1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com The Swedish industrial group Trelleborg AB said on Tuesday (28 June) that it had established a commercial-paper programme through its fully-owned subsidiary Trelleborg Treasury AB. Through the programme Trelleborg would be able to issue commercial...
Tags: Trelleborg, Trelleborg AB
Research articles 2005-06-28
The Contraction of the U.S. Commercial Paper Markets
The commercial paper market volumes are continuing to drop. The decrease in paper outstanding has in fact accelerated. A large portion of the change is coming from the Asset Backed Commercial Paper market (ABCP). click to enlarge by Walter Kurtz
Tags: US Market, Financial, Walter Kurtz
External links 2009-07-17
US$150 Million U.S. Commercial Paper Program Arranged By Bank Of America For Banco Inbursa, S.A
MEXICO CITY, MEXICO--BUSINESS WIRE--April 15, 1996--Bank of America and Banco Inbursa today announced the successful syndication of a new, one-year US$150 million U.S. commercial paper program for Banco Inbursa. This program will mark Banco Inbursa's entry into the U.S. commercial paper market. BankAmerica acts as arranger, administrative...
Tags: Bank of America Corp.
Research articles 1996-04-15
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