Commercial Paper
From Reuters Financial Glossary
Synonym: CP
This is a short-term unsecured promissory note issued for a specified amount and maturing on a specified date. CP is a negotiable instrument, typically in bearer form. CP, like CDs, are a means of raising working capital. In terms of funding costs, the issue of one or another should make no difference since both will produce comparable yields. However, CP tends to be issued with maturities of 30 days or less, to avoid competing with the CD market.
