A Tale of Two Cities: London and New York§
Alright, buckle up, finance aficionados! We’re about to jet-set across the Atlantic and dive into the world of Euro-Commercial Paper (ECP). No, it’s not fancy stationery with a European twist. It’s a terrific tool for obtaining same-day funds, and it’s cooler than the other side of the pillow.
What the Heck is Euro-Commercial Paper?§
Euro-Commercial Paper, or ECP for those who love acronyms, is a form of commercial paper that’s issued in a Eurocurrency. What’s Eurocurrency, you ask? Great question!
Eurocurrency: A currency held or traded outside its country of origin. Think of it like a rebellious teenager backpacking across Europe rather than staying at home.
So, ECP is commercial paper issued in a Eurocurrency, and the market for these bad boys is centered in London. It’s a go-to method for obtaining quick, same-day funds by issuing unsecured notes.