Eurocommercial Paper


DEFINITION of 'Eurocommercial Paper'

An unsecured, short-term loan issued by a bank or corporation in the international money market, denominated in a currency that differs from the corporation's domestic currency.

BREAKING DOWN 'Eurocommercial Paper'

For example, if a U.S. corporation issues a short-term bond denominated in Canadian dollars to finance its inventory through the international money market, it has issued eurocommercial paper.

  1. Eurocurrency

    Currency deposited by national governments or corporations in ...
  2. Money Market

    A segment of the financial market in which financial instruments ...
  3. Loan

    The act of giving money, property or other material goods to ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, ...
  6. Unsecured Loan

    A loan that is issued and supported only by the borrower's creditworthiness, ...
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