What is the difference between a direct and an indirect placement of commercial paper?

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What is the difference between a direct and an indirect placement of commercial paper?

 

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Commercial paper is sold to investors either directly (about 20 percent of all issues in 2008—see Figure 16.3), using the issuers’ own sales force (e.g., GMAC), or indirectly through brokers and dealers (about 80 percent of all issues in 2008), such as commercial banks and investment banks underwriting the issues (see below). Commercial paper underwritten and issued through brokers and dealers is more expensive to the issuer, usually increasing the cost of the issue by one-tenth to one-eighth of a percent, reflecting an underwriting cost. In return, the dealer guarantees the sale of the whole issue.

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