Unsecured, negotiable promissory note issued by a corporation for short term funding. |
Key Benefits
- Backed by general credit of the issuing company, however may be restricted depending on individual investment policy guidelines
- Can be sold at market value prior to maturity
- Usually yields higher than Banker’s Acceptances and government issued Money Market securities with similar terms
Return
- Sold on a discount basis
- Return to the investor is the difference between the purchase price and the maturity value
Liquidity and Investment Time Frame
- Liquidity varies based on issuer’s credit rating
- Maximum maturity of 365 days; majority issued with maturity of 90 days or less
Minimum Requirement
- $50,000
- Multiples of $1,000 thereafter
For more information please contact us.
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