MTN – Caution: name is misleading!

Medium-term notes: •– Maturities of nine months to 100 years •– Registered with SEC under Rule 415 (“shelf registration”) •– Sold on a “best efforts” basis

How about index-amortizing notes. Try to remember that one!

They are ‘medium term’ because they typically finance the space between CP and commercial bonds.


investpopdia This type of debt program is used by a company so it can have constant cash flows coming in from its debt issuance; it allows a company to tailor its debt issuance to meet its financing needs. Medium-term notes allow a company to register with the SEC only once, instead of every time for differing maturities.