Q: What are commercial papers?
Commercial Papers (“CPs”) are unsecured short-term debt instruments issued by corporates to get funds from the public (private individuals, institutional investors, non-governmental organizations, religious bodies etc.) to meet short-term debt obligations such as working capital needs.
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Q: Primary and Secondary Market for Commercial Papers
A CP can be purchased either in a primary or secondary market. The primary market is where investors buy financial instruments at issuance, while in the secondary market, investors trade (i.e., buy and sell) instruments purchased at primary market ...
Q: What do I Benefit from Investing in Commercial Papers?
While CPs in Nigeria are typically issued by blue chip corporates with impressive track records of financial performance, this does not eliminate credit risk. The discount rate on the CP is usually reflective of the credit rating of the issuer, which ...
Q. How to calculate your Commercial Paper Investment Returns
Stage 1 Under current terms (interest rate & 182-day tenor), investor puts N5m to work. However, this represents Face value "FV" (A) to be received at maturity. Interest works out to -N514k (B) which if taken upfront, means the actual/real amount ...
Q: How do Commercial Papers work?
CPs are like Treasury bills (“T-Bills”) because they are issued at discount rates, which may be paid upfront or capitalized.
Q: What is Afrinvestor?
Afrinvestor gives instant and secure access to easily buy and sell stocks of companies listed on the Nigerian stock market. You can also invest in Treasury Bills and Commercial Papers with just a few taps. It is a user-friendly platform. If you want ...