Commercial paper is an unsecured short-term debt issued in the money market by financial and non-financial companies. It is generally issued in the framework of "programmes" set up under the leadership of a financial institution (e.g. Fortis Bank n.v./s.a. programme), the "arranger", and placed with investors by one or more financial intermediaries, the "dealers".

The higher return versus treasury bills and bank deposits is linked to the credit risk of the issuer. For the most part, it is a very safe investment because the financial situation of a company can generally be predicted with good accuracy over a few months. Most issuers are rated or well-known companies. Typical durations range from a few days to one year.

Commercial paper offers investors the opportunity to diversify their investments, as they may show their interest for specific investments (amount, maturity, price). Dealers pass this information on to issuers.

Commercial paper is also relatively liquid (depending on the issuer and arranger) as the notes are negotiable and a secondary market is organised by the dealer (on a best effort basis). It can be considered as an alternative to a bond issue.