Prescient Markets is a pioneer of direct debt issuance over
the internet through cpmarket.com, which specializes in offerings
of new commercial paper by large, regular issuers. The company
launched in February 1999 after CEO Laurent Paulhac put together a
business plan focused on the short-term debt markets. The initial
reaction to the concept of internet distribution from potential
backers was moderately encouraging. "I met with a handful of people
in November and December '98 and the view was that it was an
interesting idea," says Paulhac. "At the time many didn't think
that the internet would be that great for this kind of business,
but they felt that we had a good vision."
A group of companies under the auspices of the Direct Issuers
Working Group (DIWG) liked the idea but felt that other potential
providers should be allowed to pitch for the business. A request
for proposals was...
