Commercial paper

Commercial paper depends on a company’s commitment to pay to its general credit rating. It is often guaranteed by a line of credit or related company. The return is higher than that of bonds and banker’s acceptances, and there are no transaction fees.

Features

Level of risk depends on issuing company
Only companies accepted by Laurentian Bank: Ford Credit Canada Limited and General Motors Acceptance Corporation (GMAC)
Maturities of up to 365 days
Offered in multiples of $1,000 (minimum purchase of $100,000)
Negotiable at any time at market price