Commercial Papers: A Strategic Option for Short-Term Investment Growth
Coronation Securities
28 May 2025 · Thought Leadership Articles
Looking for smarter ways to grow your idle cash? Commercial papers (CPs) may be the answer. Traditionally used by large corporations, CPs are gaining popularity among savvy retail investors and businesses in Nigeria for their strong short-term return potential.
CPs are short-term debt instruments issued by reputable companies, offering fixed returns without long-term commitment. With yields as high as 23% per annum and flexible tenors from just 15 days, they present a compelling alternative to low-interest savings accounts and fixed deposits. But with greater reward comes some risk, especially around creditworthiness and liquidity.
This article explores how CPs work, their benefits, and the risks to watch out for. Whether you’re a business with surplus cash or an individual looking to beat inflation, commercial papers can be a strategic addition to your portfolio, especially when guided by expert partners like Coronation Securities.
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CPs are short-term debt instruments issued by reputable companies, offering fixed returns without long-term commitment. With yields as high as 23% per annum and flexible tenors from just 15 days, they present a compelling alternative to low-interest savings accounts and fixed deposits. But with greater reward comes some risk, especially around creditworthiness and liquidity.
This article explores how CPs work, their benefits, and the risks to watch out for. Whether you’re a business with surplus cash or an individual looking to beat inflation, commercial papers can be a strategic addition to your portfolio, especially when guided by expert partners like Coronation Securities.
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