What is Commercial Paper (CP)?

Commercial Paper is a short term bond issued by large corporations. Usually CP investments are issued by banks. CP bonds are used by investors to collect short term interest or discount payments and by corporations to pay off short term debt. 

Maturity: Maximum of 270 days. Average CP is 1 - 2 months
2020 Rates: The average monthly yield is currently .49% for an AA rated CP

CP's are usually not available to average individuals. Normally, they require a minimum investment of $100,000 and are bought by financial institutions.

Commercial Papers are also not secured by collateral.