Commercial Paper

Jeff Immelt and Jim Cramer discuss commercial paper.

The US Treasury makes a deposit with the federal reserve to set up special purpose entity which will buy up commercial paper.  The commercial paper market was frozen.  The Fed's purpose is to backstop guarantee short term commercial paper and increase the

A brief discussion of the 1.6 trillion dollar commercial paper market which a company uses for short term financing needs.

What is Commercial Paper?

A corporation may issue bonds or equity to fulfill their long term capital needs; however, corporations are also in need of short term funds as well. As an alternative to bank borrowing, corporations may issue commercial paper which are basically short term, unsecured notes issued in the open market for immediate financing needs.