commercial paper


Definition of commercial paper

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

Examples of commercial paper in a Sentence

Recent Examples on the Web Active buying of corporate bonds and commercial paper with an expanded upper limit on holdings totaling 20 trillion yen. Toru Fujioka,, "Bank of Japan to Maintain Easing as Suga Takes Japan’s Top Job," 16 Sep. 2020 Indeed, some banks in these countries were able to borrow more cheaply (via commercial paper or certificates of deposit) than their American peers, according to the authors. The Economist, "Swapping panic for calm The successes of the Fed’s dollar-swap lines," 20 June 2020 Fidelity cited volatile outflows from the funds—which invest in short-term commercial paper and certificates of deposit issued by companies—and into government money-market funds during moments of market stress. Mike Bird, WSJ, "Money-Market Shifts Are Bad News for Profit-Starved Global Banks," 29 June 2020 To fund themselves, these banks rely heavily on selling short-term dollar liabilities, including certificates of deposit and commercial paper, to investors. The Economist, "Swapping panic for calm The successes of the Fed’s dollar-swap lines," 20 June 2020 Companies have already been drawing down credit lines — Anheuser-Busch InBev and Kraft Heinz among them — while demand for short-term unsecured bonds known as commercial paper dries up. New York Times, "Here Come the Bailouts, Starting With the Airlines," 17 Mar. 2020 Firms frequently issue commercial paper—IOUs that generally mature in fewer than 270 days—to fund everyday expenses, like rent and payroll. Christopher Condon, Fortune, "The Fed restarts commercial paper facility to help market," 17 Mar. 2020 The news about commercial paper funding on its face sounds wonky. Susan Tompor, Detroit Free Press, "Toilet paper isn't the only paper in trouble during the crisis," 18 Mar. 2020 The Federal Reserve Bank of New York said its new facility to assist the commercial paper market will launch April 14. Michael S. Derby, WSJ, "New York Fed Says Commercial Paper Facility Will Launch April 14," 6 Apr. 2020

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.

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First Known Use of commercial paper

1836, in the meaning defined above

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Time Traveler for commercial paper

Time Traveler

The first known use of commercial paper was in 1836

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Statistics for commercial paper

Last Updated

27 Sep 2020

Cite this Entry

“Commercial paper.” Dictionary, Merriam-Webster, Accessed 28 Oct. 2020.

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More Definitions for commercial paper

commercial paper

Legal Definition of commercial paper

see paper

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