Bid-offer spread and Commercial paper: Difference between pages

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The difference between the prices at which market makers (such as banks and other dealers) are willing to buy and sell currencies or other traded assets.
(CP). Unsecured promissory notes issued by strong credits including both financial institutions and non-bank corporates, generally with maturity of 270 days or less.
 
The term also applies to the difference between the borrowing rate and the deposit rate, quoted for a particular maturity of funds.
 
 
In simple terms, bid-offer spreads represent profits for market makers, and costs for their customers.  
 


== See also ==
== See also ==
* [[Bid-offer price]]
* [[Asset backed commercial paper]]
* [[Bid price]]
* [[Basis point]]
* [[Offer price]]
* [[Eurocommercial paper]]
* [[Cross rates]]
* [[LOC backed]]
* [[Open-ended investment company ]]
* [[Promissory note]]
* [[Spread]]
* [[Sterling commercial paper]]
* [[Spread to Treasury / Governments]]


[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]

Revision as of 14:17, 23 October 2012

(CP). Unsecured promissory notes issued by strong credits including both financial institutions and non-bank corporates, generally with maturity of 270 days or less.

See also


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