Medium-term notes

Commercial Paper

Commercial paper is a short-term debt instrument issued by corporations typically with a maturity of less than 270 days. Primarily used to fund working capital needs or to finance accounts receivable, it is an important source of cash for businesses. It also serves as a low-cost way to temporarily invest cash.

Commercial paper is an unsecured and discounted promissory note issued by companies to get short-term financing. It’s a safer investment than bonds because it is not backed by any collateral. Also, it’s a very liquid instrument, meaning that you can sell it at any given time without restrictions.

For companies looking to raise funds, commercial paper is often a preferred source. Not only does it provide an immediate injection of cash, but it is also much less expensive than other types of credit. Furthermore, companies do not have to worry about complex corporate financing regulations when issuing commercial paper.

Commercial paper comes in two forms – non-negotiable and negotiable. Non-negotiable commercial paper (NNPCP) is issued directly by the company to the investor. The issuer of the NNPCP will typically have a one-time credit check on the investor before the paper is issued.

The other type, negotiable commercial paper (NCP), is issued through a dealer who acts as a middleman between purchasers and issuers. With NCP, the investor is dealing with the dealer and not directly with the company. This can provide a level of protection against defaults.

Commercial paper can be issued de jure or de facto. De jure commercial papers are issued under the laws of a country while de facto commercial paper is issued outside those laws.

Although commercial paper is a relatively safe investment, it’s important to note that if the company’s creditworthiness declines, then investors may suffer substantial losses if they are unable to recover their investment. Therefore, it is essential to research a company thoroughly before investing in its commercial paper.

Commercial paper is an important source of short-term financing for corporations. It’s considered to be a relatively safe instrument with relatively low returns and can be a valuable tool when used appropriately. However, investors must conduct extensive research and have a full understanding of the issuer before investing in commercial paper.

Intermediate Tickets

Intermediate tickets are a great way to save money when travel by train. They can save you up to half the cost of a full price ticket, or even more if used carefully. An intermediate ticket can be bought in advance for any route in the UK and is only valid for that journey. It must be used within a certain time and has a set validity so it can only be used up to a certain station.

Intermediate tickets are a great choice for those who plan their route in advance, or are more spontaneous. An intermediate ticket can be bought up to two weeks in advance, making it an ideal choice for those who just want to pop off on an impromptu journey. Another benefit is that they can be upgraded to first class, making them an even more cost-effective option.

However, there are some restrictions to be aware of when using an intermediate ticket. As mentioned, the ticket must be used for the route specified and the time limit for the ticket must be respected. It is also worth noting that some trains may require a seat reservation, so be sure to check this before travelling.

Another thing to consider is that if you make double-checked journeys, you may be able to save even more money. This means breaking your journey down into two or more tickets that work out cheaper, such as a single fare for part of the journey and a return for the rest.

In conclusion, an intermediate ticket is a great way to save money on your train journey and can be used by everyone from the spontaneous traveller to the more organised one. However, given their restriction to one specified route, it is important to bear in mind that they can’t work out cheaper than other ticket types such as singles and returns.