ERM Glossary: Commercial Paper (CP)

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Commercial paper is an unsecured promissory note usually issued to finance short-term credit needs. It specifies the face amount paid to investors on the maturity date. Commercial Paper can be issued as an unsecured obligation of a banking group or, for example when issued by a group’s conduit, as an asset-backed obligation (in which case it is referred to as asset-backed commercial paper).


Commercial Paper is usually issued for periods from as little as a week up to nine months.


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