eurodollars
Foreign-held American currency
Eurodollars are U.S. dollars deposited in banks outside the United States, particularly in Europe.
Despite the name, they can be held anywhere abroad—the prefix reflects their origins in postwar European banking.
These deposits operate outside Federal Reserve regulation, making them important in international finance and lending: The company raised capital through the eurodollar market.
Interbank lending benchmark rate
- interbankBetween financial institutions
- prime rateBank's benchmark lending percentage
- depositsMaterial settled or stored
- loansBorrowed money arrangements
clearing · settlement · liquidity · credit lines · certificates of deposit · collateral · bank regulation · payment systems
Zero-rate wealth jurisdiction
- Cayman IslandsCaribbean British overseas territory
- SwitzerlandAlpine republic, perpetually neutral
- LuxembourgEuropean grand duchy
- BermudaNorth Atlantic island group
jurisdiction · regulation · secrecy · capital flight · repatriation · foreign banks · offshore banking · petrodollars
Collected works or assets
- bondsTies that unite
- securitiesTradeable financial assets
- capital flowsMovement of investment money
- yieldProduce or relinquish
returns · risk · diversification · institutional investors · reserves · fixed income · corporate bonds · eurobonds
Currency trading market
- currency exchangeConverting between national monies
- arbitrageExploiting price discrepancies
- hedgingNoncommittal maneuvering
- swapsMutual trades
futures · options · derivatives · volatility · speculation · trading desk · spot market · rollover
Fixed-term bank instruments
- short-termOf limited duration
- money supplyTotal currency in circulation
- financial instrumentsTradable monetary contracts
- secondary marketExchange for existing securities
broker-dealers · clearinghouse · yield curve · maturity · money market funds
LIBOR
Interbank lending benchmark rate
- interbankBetween financial institutions
- prime rateBank's benchmark lending percentage
- depositsMaterial settled or stored
loans · clearing · settlement · liquidity · credit lines · certificates of deposit · collateral · bank regulation · payment systems
tax haven
Zero-rate wealth jurisdiction
- Cayman IslandsCaribbean British overseas territory
- SwitzerlandAlpine republic, perpetually neutral
- LuxembourgEuropean grand duchy
Bermuda · jurisdiction · regulation · secrecy · capital flight · repatriation · foreign banks · offshore banking · petrodollars
portfolio
Collected works or assets
- bondsTies that unite
- securitiesTradeable financial assets
- capital flowsMovement of investment money
yield · returns · risk · diversification · institutional investors · reserves · fixed income · corporate bonds · eurobonds · multinational corporations
forex
Currency trading market
- currency exchangeConverting between national monies
- arbitrageExploiting price discrepancies
- hedgingNoncommittal maneuvering
swaps · futures · options · derivatives · volatility · speculation · trading desk · spot market · rollover · parity
certificates of deposit
Fixed-term bank instruments
- short-termOf limited duration
- money supplyTotal currency in circulation
- financial instrumentsTradable monetary contracts
secondary market · broker-dealers · clearinghouse · yield curve · maturity · money market funds