commercial paper market

The commercial paper market involves short-term, unsecured debt instruments issued by companies to raise funds quickly, typically for operational needs like inventory or payroll. These financial instruments, known as commercial paper, are sold to investors at a discount and mature within a few days to a few months. This market provides companies with a low-cost alternative to bank loans and offers investors a relatively safe, short-term investment opportunity. The market is influenced by interest rates and creditworthiness of issuers, serving as a key component of the broader credit and money markets.