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Commercial Paper Issuance

Definition

Commercial Paper Issuance refers to the process by which corporations and financial institutions issue short-term, unsecured promissory notes to raise capital. These debt instruments are typically sold at a discount and mature within 270 days, representing a common method for financing immediate operational needs. It serves as a crucial component of short-term corporate liquidity management. This financial activity provides a flexible alternative to traditional bank loans for entities with strong credit ratings.