If you are wanting a short-term credit investment that does not go through a financial institution but is still guaranteed by a bank, bankers’ acceptance (BA) may be the investment for you. These are typically traded through a secondary market and can be done so at a discounted amount from the original face value. What is nice about BAs is that they have a negotiable time frame for investing and does not have to be kept through to a maturity date–it can actually be sold off or traded in these secondary markets. These are most often used in international trade.
November 20, 2018 By Leave a Comment