Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
Unsecured short-dated money-market paper issued by companies to institutional buyers, with an outer tenor of up to one year under the rules in force at the time of writing.
Cheap because the lender is exposed for weeks rather than years. Every rupee of it falls inside the next twelve months, always, and has to be reissued to somebody willing to buy it that week.
How a lender’s borrowings are split across bank term loans, debentures, commercial paper, foreign currency borrowing and subordinated debt — disclosed instrument by instrument in the borrowings note.
Cheap and short is cheap because the lender is exposed for weeks; dear and long is dear because it is exposed for years. The mix decides how fast the cost of funds moves when the market changes its mind.
Borrowings presented as current liabilities — cash credit and overdraft, working capital demand loans, commercial paper, and the current maturities of long-term loans sitting alongside them.
Two very different things share this caption: money that was always meant to be rolled, and a long loan whose date has arrived. Read them as one number and you misread both.