Debt E-Issuance Gaining.

• Position: Brief Article

Debt e-issuance is emerging as the latest trend in corporate e-commerce. Large corporations in North America are embracing this new phenomenon, in which commercial paper and other types of debt are issued online, according to a study conducted by Greenwich Associates, the international research and consulting firm. The study, based on year-end 2000 interviews with CEOs and treasurers at more than 200 debt issuers representing nearly S1.9 trillion in outstanding debt, revealed that 13 percent of larger U.S. and Canadian corporations have issued debt online and that an additional 22 percent are considering doing so.

"Debt e-issuance is no longer on the horizon for many firms. It is already here," says Kyle Hartley, a Greenwich consultant who helped oversee the study. In addition, Greenwich found a strong correlation between e-issuance use by a corporation, its amount of outstanding debt and its credit rating. Current...