Directly placed commercial paper is sold directly to the investor by the issuer without the services of a securities firm. … Dealer paper is issued using the services of a securities firm, usually an investment bank, but, increasingly, large commercial banks.
Likewise, people ask, under what circumstances would a firm use dealer paper?
Paper dealers are used by corporations that wish to access the public markets for their short-term borrowing needs.
One may also ask, what are typical commercial paper denominations? In practice, the denomination of commercial paper is large: minimum denominations are usually $100,000, although face amounts as low as $10,000 are available from some issuers. Because most investors are institutions, typical face amounts are in multiples of $1 million.
People also ask, what is a dealer commercial paper?
Filters. A high-quality unsecured note that is sold by corporations through dealers. It is generally high-quality debt, because if the company isn’t financially healthy, no one will be willing to purchase the commercial paper.