2. Medium-term notes are a financing method between commercial notes and corporate bonds, with a term range of 9 months at the shortest and 30 years at the longest. Compared with corporate bonds, the sales of medium-term notes often lack continuity or periodicity. Corporate bonds are generally sold when the market interest rate is relatively low, and the financing cost of enterprises is low. When the market interest rate is relatively high, enterprises generally issue medium-term commercial paper for financing?
3. Short-term financing bills should be called commercial bills. In the United States, the term of commercial paper is generally between 1-270 days. Commercial paper is a discount tool, and its liquidity is relatively low, because commercial paper is generally customized according to the specific needs of investors.
4. Due to the different issuance time and characteristics of the three bonds, the rating agencies give different ratings. There is also a gap in liquidity, and the derivatives they create are different. The purpose of issuance is also different, and each of them has its own advantages and disadvantages.
Commercial paper is a short-term unsecured promissory note, a zero coupon bond and a discount tool. Can be used for bridge financing. Medium-term notes are more flexible, with more derivatives and more embedded options, mainly to fill the gap between commercial notes and corporate bonds.
Corporate bonds are debts that have the responsibility to pay interest regularly and repay the principal at maturity. They are interest-bearing bonds that raise long-term funds when the capital market is favorable. Three kinds of bonds can be collectively referred to as corporate debt instruments.