Investopedia explains 'Commercial Paper'
Commercial paper is not usually backed by any form of collateral, so only firms with high-quality debt ratings will easily find buyers without having to offer a substantial discount (higher cost) for the debt issue. A major benefit of commercial paper is that it does not need to be registered with the Securities and Exchange Commission (SEC) as long as it matures before nine months (270 days), making it a very cost-effective means of financing. The proceeds from this type of financing can only be used on current assets (inventories) and are not allowed to be used on fixed assets, such as a new plant, without SEC involvement. unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates.
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This asset class has left much of its unstable past behind. Find out how to I nvest in it. why is debt issued in bot h temporary and permanent forms?
Debt is separated into two categories: 1) Temporary or short-term 2) Permanent or long-term.
Temporary or short-term debt refers to debt with a maturity of less than one year. This means that ...global financial market, is an unsecured promissory note with a fixed maturity of no more than 270 days.

Commercial paper is a money-market security