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. Unsecured Loan

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

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

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

    The act of giving money, property or other material goods to ...
  5. Eurocurrency

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

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