The Benefits and Obstacles of Internet-Based Commercial Paper Issuance in Europe - A Survey

41 Pages Posted: 2 Mar 2007  

Andreas Trauten

University of Muenster - Finance Center

Thomas Langer

University of Muenster - Finance Center

Date Written: September 2007

Abstract

We survey 54 corporate Commercial Paper (CP) issuers from eleven European countries in order to analyse the perceived benefits and obstacles of internet platforms for issuing CP in Europe. The lack of a joint initiative of large CP issuers, close relations to banks and the fact that liquidity is scattered over separate domestic CP markets are felt to be the main obstacles to the establishment of a European CP platform. Responses reveal consensus that an internet platform would increase flexibility but show divergent opinions about the effect on other criteria. Corporate issuers expect their own issuance activity as well as the overall market volume to increase within the next five years. The establishment of an internet-based issuance platform is considered to be likely.

Keywords: Commercial Paper, European money markets, security issuance, internet platforms, survey

JEL Classification: G21, G32, M13

Suggested Citation

Trauten, Andreas and Langer, Thomas, The Benefits and Obstacles of Internet-Based Commercial Paper Issuance in Europe - A Survey (September 2007). Available at SSRN: https://ssrn.com/abstract=967410 or http://dx.doi.org/10.2139/ssrn.967410

Andreas Trauten (Contact Author)

University of Muenster - Finance Center ( email )

Universitatsstr. 14-16
Muenster, 48143
Germany

Thomas Langer

University of Muenster - Finance Center ( email )

Universitatsstr. 14-16
Muenster, 48143
Germany
+49 251 83 22033 (Phone)

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