kommerciaalipaperi

Kommerciaalipaperi, often referred to as commercial paper, is a type of unsecured, short-term debt instrument issued by corporations to finance short-term liabilities. It is typically used for working capital needs, inventory financing, or to meet other immediate cash flow requirements. Commercial paper is usually issued at a discount to its face value and matures at par, with the difference representing the interest.

The maturity of commercial paper generally ranges from a few days to 270 days. Maturities longer than 270 days are subject to registration requirements with regulatory bodies like the Securities and Exchange Commission in the United States, which issuers often seek to avoid. Issuers of commercial paper are typically large, well-established corporations with strong credit ratings, as the market is primarily based on the issuer's creditworthiness.

Commercial paper is a significant component of the money market, providing a flexible and cost-effective way for companies to raise funds. Investors in commercial paper include money market funds, other corporations, pension funds, and insurance companies seeking a safe and liquid investment with a relatively short holding period. The market is largely over-the-counter, with trading occurring directly between issuers and investors or through dealers.