USCP

Question 1

What is CP?

Answer 1

Commercial paper

A form of direct financing - an alternative to the use of banks or intermediated finance

Takes the form of a SHORT TERM SECURED or UNSECURED promissory note
Note is sold at a discount to face value

Maturity date: fixed, usually less than 1 year

Issued: ad hoc basis or as part of a medium term finance programme

Question 2

The Uscp is the…. In the ….

Answer 2

Largest in the world. Total outstanding paper: 2200 billion in July 2007

Question 3

Uscp is used to…

Answer 3

Finance working capital
And
Seasonal credit
In most sectors of the us economy

Question 4

Uscp is a major…

Answer 4

Source of finance for about 15k us corporations and financial institutions

Question 5

Uscp are bearer..l

Answer 5

Instruments issued on a discount basis

Question 6

Maturities of Uscp…

Answer 6

270 days

Or less

Most CP is for 30 to 60 days

Question 7

Minimum instrument value of Uscp…

Answer 7

100,000 dollars

Mostly in 1 to 5 million dollar range.

All settlements in same day funds

Question 8

What are uscps exempt from under the securities act?

Answer 8

From registration requirements