• Refers to a firm in the actual business of growing, mining, processing or otherwise bona fide commercial activity for a commodity market. This compares to Funds or Speculators.
| ||Embedded terms in definition|
| ||Referenced Terms|
| ||Asset and liability management: Is the process for financial institutions and corporations to adjust their funding and usage of funds. Some approaches are the Bucket, GAP, Hedging, Matched Book, Matched Funding, Financial Swaps, and Structured Products. With the lowering of various insurance, investment and Commercial banking barriers, the definition is now more inclusive. Previously, it tended to be reserved for non-investment banking and brokerage operations. Broker/dealer institutions tended to describe their hedging activities as risk management.|
| ||Baker plan: A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor countries (the Baker 15) would undertake growth-oriented structural reforms, to be supported by increased financing from the World Bank and continued lending from Commercial banks.|
| ||Banker's acceptance: Are money market instruments which are used to finance import or export transactions. These instruments are essentially checks and represents a bank's promise and ability to pay the face or principal amount on the stipulated maturity date. Maturities are generally less than 3months. Bankers Acceptances are viewed as money market instruments.A money market instrument created to facilitate international trade transactions. This instrument is highly liquid and safe because the risk of the trade transaction is transferred to the bank that "accepts" the obligation to pay the investor.BA|
A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill. When the merchant presents a letter of credit to their bank, the bank discounts it and stamps ACCEPTED on it. Hence, a letter of credit then becomes a banker's acceptance. The banker's acceptances can be sold in the secondary market to money market mutual funds.Short-term, low-risk marketable securities arising from bank guarantees of business transactions; are sold by banks at a discount from their maturity value and provide yields slightly below those on negotiable CDs and Commercial paper, but higher than those on Government of Canada treasury bills.A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.
| ||C&i: Commercial and Industrial loans are also known as C&I loans. They are issued to mining, manufacturing, trade, transport, construction, and services firms. They may be secured or unsecured. They may be made on the spot loan or as a loan commitment. They can involve revolving versus take-it-or-leave-it loans.|
| ||Cash equivalent security: Is a term which has several meanings. It often refers to high grade instruments which are very liquid and have very little time to maturity. Among these are treasury bills, Commercial paper, and bankers' acceptances. In a somewhat broader sense it can include money market shares and short-term municipal paper.|
| ||Related Terms|
| ||Commercial and industrial loans c&i loans|
Commercial finance companies
Euro commercial paper
What to Know Before Declaring Your Financial Independence: Twenty-somethings may not realize it, but every time they enter a new phase of their life as young adults - perhaps starting college, a career or a family - they're also venturing into a new world of money management. Here are ways to be prepared. More...
Great spirits have always found violent opposition from mediocrities. The latter cannot understand it when a man does not thoughtlessly submit to hereditary prejudices but honestly and courageously uses his intelligence. - Albert Einstein