Hint mode is switched on Switch off
Glossary

Euro-Commercial Paper (ECP)

Category — Bond Types
Eurocommercial paper (ECP) is a form of unsecured short-term loan which is issued by a bank or corporation on the international money market. ECP are classified into secured and unsecured securities. Issuers most often issue these debt securities due to lower interest rates. Also, issuers prefer to receive financing with the lowest possible transaction costs for the issue, respectively, eurocommercial papers become a good source of financing.

Main characteristics of Eurocommercial papers:
• Eurocommercial papers are mainly issued in the form of discounted securities, but there are also interest-bearing securities in the form of promissory notes.
• The maturity of ECP varies from several days to one year. The most common circulation period is of 182 days.
• The minimum trading lot for ECP is usually $ 500,000. Due to this lot size, institutional investors play the main role in the ECP market, who have access to these securities in the secondary market.

The main positive aspects of Eurocommercial papers for the issuer:
• Eurocommercial paper is a flexible alternative to short-term financing without collateral requirement.
• It’s a cheaper and therefore attractive source of funding.
• The interest rate on Euro-commercial securities is slightly higher than the market rate.
• ECPs are traded on the secondary market.
Terms from the same category

explore the most comprehensive database

800 000

bonds globally

Over 400

pricing sources

80 000

stocks

9 000

ETF

track your portfolio in the most efficient way
Bond Search
Watchlist
Excel ADD-IN
×

— Are you looking for the complete & verified bond data?

— We have everything you need:

full data on over 700 000 bonds, stocks & ETFs; powerful bond screener; over 350 pricing sources among stock exchanges & OTC market; ratings & financial reports; user-friendly interface; available anywhere via Website, Excel Add-in and Mobile app.

Register
×

Why

You will have detailed descriptive & pricing data for 650K bonds, 76K stocks, 8K ETFs
Get full access to the platform from any device & via Cbonds app
Enhance your portfolio management with Cbonds Excel Add-in
Build yield maps, make chart comparison within a click
Don't wait any longer — start using Cbonds today! Register
Registration is required to get access.