I was reading up about commercial paper on investopedia. It says that commercial paper is a form of short-term unsecured debt. It then goes on to say that
Commercial paper is not usually backed by any form of collateral, making it a form of unsecured debt.
In the accompanying video...
Buyers have no claim on a company's assets if the company fails to pay up at maturity. Therefore only firms with good credit can successfully sell commercial paper.
Is this to say that a company could sell $10M worth of commercial paper, and refuse to pay it back with no consequence other than a dismal credit rating?
Read more: Commercial Paper http://www.investopedia.com/terms/c/commercialpaper.asp#ixzz4x6yFnpYx