Buzzword: Commercial paper

Marketplace Staff Sep 14, 2007
HTML EMBED:
COPY

Buzzword: Commercial paper

Marketplace Staff Sep 14, 2007
HTML EMBED:
COPY

Unfolding credit brings us this week’s Marketplace Money buzzword: Commercial paper.

That’s the name for the short-term loans which big corporations lend to other big corporations. They’re cheaper than bank loans, which makes them a good way to get a quick sheaf of cash. But the subprime crisis shredded the commercial paper biz. Issuers feared they wouldn’t get paid back for their paper, so they issued less of it.

According to a new report, though, corporations are starting to lend again, leading some to think the credit crunch is easing up. Maybe it’s possible to dig the economy out of the trash.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.