commercial paper Sentence Examples

1. Commercial paper is a short-term debt instrument issued by corporations to raise funds for operational needs.
2. Investors often turn to commercial paper for its relatively low risk and higher returns compared to other short-term investments.
3. Commercial paper typically matures within a few days to a year, making it an attractive option for companies seeking temporary financing.
4. The issuance of commercial paper allows businesses to access liquidity quickly without the need for lengthy approval processes.
5. Commercial paper markets provide a platform for trading these financial instruments among institutional investors.
6. Credit ratings play a crucial role in determining the interest rates and terms associated with commercial paper issuance.
7. Companies with strong credit ratings can issue commercial paper at lower interest rates, reducing borrowing costs.
8. Commercial paper is commonly used to finance working capital needs, such as inventory purchases and payroll expenses.
9. The Federal Reserve occasionally intervenes in the commercial paper market to stabilize liquidity and support financial markets during periods of stress.
10. Despite its advantages, commercial paper carries some risks, including credit risk and market volatility, which investors should carefully consider.

commercial paper Meaning

Wordnet

commercial paper (n)

an unsecured and unregistered short-term obligation issued by an institutional borrower to investors who have temporarily idle cash

Synonyms & Antonyms of commercial paper

No Synonyms and anytonyms found

FAQs About the word commercial paper

What is the meaning of the word commercial paper

an unsecured and unregistered short-term obligation issued by an institutional borrower to investors who have temporarily idle cash

What are the synonyms of the word commercial paper

No synonyms found.

What are the antonyms of the word commercial paper

No antonyms found.

What is the usage of word commercial paper

Commercial paper is a short-term debt instrument issued by corporations to raise funds for operational needs.

Investors often turn to commercial paper for its relatively low risk and higher returns compared to other short-term investments.

How to use the word commercial paper in a sentence?

Commercial paper typically matures within a few days to a year, making it an attractive option for companies seeking temporary financing.

The issuance of commercial paper allows businesses to access liquidity quickly without the need for lengthy approval processes.