Bankers' Acceptances ... is it an investment instrument?

A bankers' acceptance is a short-term credit investment created by a non-financial company and guaranteed by a bank as to payment. "BAs" are traded at discounts to face value in the secondary market.

These instruments are commonly used in international transactions, and might associate them with importing and exporting.

As with a T-Bill, bankers' acceptances are so short-term it would make no sense to send interest checks to the buyer. Instead, these short-term debt securities are purchased at a discount from their face value. The difference between what we pay and what we receive is the interest income.

The BA or bankers' acceptance is backed both by a bank's full faith and credit and the goods being purchased by the importer.