commercial paper

noun

: short-term unsecured discounted paper usually sold by one company to another for immediate cash needs

Example Sentences

Recent Examples on the Web Low interest rates meant there was little reason to shift into money-market funds, a form of mutual fund that invests in short-term debt securities including Treasury bills and commercial paper. Nina Trentmann, WSJ, 27 July 2022 Going forward, the company plans to rely on commercial paper if needed, finance chief Luca Zaramella said. Nina Trentmann, WSJ, 1 Dec. 2022 There are rumors that the assets backing Tether include highly risk commercial paper issued by Chinese entities. Hersh Shefrin, Forbes, 1 July 2022 Additionally, the company plans to pay off its outstanding commercial paper balance of $1.3 billion during the fourth quarter. Kristin Broughton, WSJ, 9 Nov. 2022 Specifically, Tether is reportedly backed by reserves that include some digital tokens and commercial paper—short-term debt issued by companies. Marco Quiroz-gutierrez, Fortune, 12 Aug. 2022 But the company’s financial statements show that a significant portion of its reserves are tied up in unsecured corporate debt known as commercial paper. New York Times, 13 June 2022 Those holdings have consisted of investments like cash and short-term U.S. government securities but also short-term IOUs known as commercial paper. Caitlin Ostroff, WSJ, 12 May 2022 Tether said the average duration of its commercial paper and certificates of deposit is 44 days and the average rating is A-1, the second-highest possible. Christiaan Hetzner, Fortune, 20 May 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'commercial paper.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Word History

First Known Use

1836, in the meaning defined above

Time Traveler
The first known use of commercial paper was in 1836

Dictionary Entries Near commercial paper

Cite this Entry

“Commercial paper.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/commercial%20paper. Accessed 5 Feb. 2023.

Legal Definition

commercial paper

see paper

More from Merriam-Webster on commercial paper

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