BROWSE

Paper Dealer

What is 'Paper Dealer'

A market maker that buys and sells extremely short-term corporate bonds called commercial paper. A paper dealer is typically a large financial firm that has the capital and sophistication to distribute commercial paper to investors on behalf of borrowing corporations and to make a market in commercial paper, setting prices at which it is willing to buy and sell.

Explaining 'Paper Dealer'

Paper dealers are used by corporations that wish to access the public markets for their short-term borrowing needs. By issuing commercial paper, a corporation may be able to obtain a larger amount of financing and/or obtain a lower interest rate on its short-term borrowings, as compared to seeking a bank loan or other short-term credit facility.
Commercial paper is offered in a range of maturities, from a few days to several months. Occasionally, individual investors can buy commercial paper directly from the issuing corporation. However, it is more common for retail investors to invest in commercial paper through a money market fund or short-term bond fund.


Further Reading


Optimal dealer pricing under transactions and return uncertainty
www.sciencedirect.com [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

Financial intermediaries and monetary economicsFinancial intermediaries and monetary economics
www.sciencedirect.com [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

Auction markets, dealership markets and execution riskAuction markets, dealership markets and execution risk
ideas.repec.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

Primary dealers in government securities marketsPrimary dealers in government securities markets
ideas.repec.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

On dealer markets under competitionOn dealer markets under competition
www.jstor.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

When safe proved risky: Commercial paper during the financial crisis of 2007-2009When safe proved risky: Commercial paper during the financial crisis of 2007-2009
www.aeaweb.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

The failure mechanics of dealer banksThe failure mechanics of dealer banks
www.aeaweb.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …

The evolution of the US commercial paper market since 1980The evolution of the US commercial paper market since 1980
heinonline.org [PDF]
… dealer … On the supply side, work began with the paper by Demsetz (1968), and additional theoretical contributions were made by Tinic (1972) and Stoll (1978a … There are also a host of empirical papers on bid-ask spreads that have arisen out of this or closely related approaches …


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