An Asset-Backed Commercial Paper (ABCP) is a type of commercial paper that is a short-term monetary-market debt instrument with a maturity of no more than 270 days. An ABCP is collateralised by other financial assets, usually issued by a large corporation or financial institution to pay for other short-term liabilities. Institutional investors usually purchase such instruments to generate short-term gains, or companies use an asset-backed commercial paper for short-term financing needs.

Related Definitions in the Project: The Commercial Definitions