Tier-2 Commercial Paper

14 min readCo-authored: Alexander Goldman Abstract The inclusion of A2/P2 commercial paper (Tier-2 CP) in institutional cash portfolios may help improve income potential and diversify risk. Data suggests that Tier-2 CP offers meaningful yield enhancement relative to comparable benchmarks and Tier-1 CP. Following the SEC’s Rule 2a-7 money market fund reforms, direct investment in Tier-2 CP has…