April 14, 2022
The Beauty of CP Attracts Many—but Not All—Corporates
CP’s flexibility and low cost beckon, but liquidity risk is a key reason one member says his company is avoiding it—for now.What’s not to like about commercial paper (CP)? This popular form of unsecured short-term debt used in the capital structures of many companies for working capital and other purposes gives issuers a relatively inexpensive, cost-efficient source of funding. Members at a recent meeting of NeuGroup for Capital Markets sponsored by Wells Fargo agreed that CP also gives them flexibility, relative…