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

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.