Time drafts drawn on and accepted by banks for payment on their maturity date. They are widely accepted as money market instruments. In trade financing, drafts that are authorized under a letter of credit in effect become a banker's acceptance when the bank places its acceptance on the draft, (i.e., acceptance is called aval).
short-term credit investment which is created by a non-financial firm and whose payment is guaranteed by a bank. Often used in importing and exporting, and as a money market fund investment.
Short-term credit instruments most commonly used by persons or firms engaged in international trade.
Money Market instrument which are bills of exchange guaranteed by a bank or trust company for payment, generally within 1 to 6 months; and used as a source of financing for international trade.
Time draft that has been drawn on and accepted by a bank. In a large and active market, investors buy and sell bankers' acceptances at rates similar to, and often below, LIBOR. Rates are low due to the low risk of default on the part of a bank and the fact that there is generally an underlying trade transaction, the proceeds of which are pledged to cover the acceptance when it matures.
An American term for a Bank Accepted Bill. Used in domestic and/or international trade or commerce to finance the shipment and storage of goods or to facilitate currency exchange transactions with foreign banks. A popular money market investment.
Banker's acceptances are negotiable time drafts, or bills of exchange, that have been accepted by a bank which, by accepting, assumes the obligation to pay the holder of the draft the face amount of the instrument on the maturity date specified. They are used primarily to finance the export, import, shipment or storage of goods.
Obligation of a bank to pay a draft drawn on the bank by a customer. Often used in international commerce and collateralized by the goods to be sold by that customer. These short-term, non-interest bearing notes are sold at a discount to face value and redeemed at maturity. Considered one type of money-market instrument.
A high-quality, short-term negotiable discount note, drawn on and accepted by banks that are obligated to pay the amount at maturity.
A bill of exchange or negotiable instrument drawn by the borrower for payment at maturity and accepted by a bank. BAs constitute a guarantee of payment by the bank and can be traded in the money market. The bank earns a “stamping fee” for providing this guarantee.
Importer's bank accepts responsibility to pay against a draft (substituting for the importer's responsibility).
A banker's acceptance is a type of short-term negotiable instrument issued by a non-financial corporation. Its capital and interest are guaranteed by the bank.
"Time draft" drawn on a bank and bearing the bank's promise to pay at a future date.
A time draft drawn on and accepted by a bank t is often used to effect payment for import-export transactions and international trade. Bear - A person who believes t stock prices will fall. See bull.
A short-term debt instrument issued by a corporation, but guaranteed by a bank, and sold on a discounted basis.
Type of short-term commercial paper issued by a corporation and guaranteed by a bank. This guarantee translates into higher issue prices and therefore lower returns. Banker's acceptances are widely used in import/export transactions and constitute a source of corporate financing.
A draft or bill of exchange accepted by a bank; payment is guaranteed by the accepting institution.
A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts to face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.
A time draft (note) drawn on and accepted by a bank. This instrument is usually used for financing import-export transactions and generally financing international trade. Payment of the note is guaranteed by the bank.
A money market instrument guaranteed by a bank. Generally used by non-financial firms for international trade.
A negotiable time draft drawn and accepted by a bank to pay the face amount to the holder at a specified time in the future. See draft.
A draft or bill of exchange accepted by a bank where the accepting institution guarantees payment. Used extensively in foreign trade transactions.