Eurodollar Deposit

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Eurodollar Deposit

A short-term certificate of deposit with a fixed interest rate issued in U.S. dollars outside the jurisdiction of the Federal Reserve. For example, one may purchase a CD in U.S. dollars and deposit it in a bank in the UK. Eurodollar deposits help persons and businesses hedge against short-term fluctuations in U.S. dollar exchange rates.
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Despite these developments, the spread of rates on bank liabilities, certificates of deposit, and Eurodollar deposits, over comparable Treasury bill rates narrowed early in 1990.
Moreover, the TED spread, the difference between eurodollar deposits and Treasury bonds, which is often thought to reflect concern about international tensions, remains quite low by recent historical standards.
Eurodollar deposits are deposits of the Cayman Islands branch of Mellon and are subject to the laws of the Cayman Islands.
The Treasury-to-eurodollar (TED) spread looks at the difference between the rates on eurodollar deposits and Treasury notes.
Treasury securities and money market instruments including Fed Funds, LIBOR, Eurodollar Deposits, Government Repurchase Agreements, BAs, CDs and Commercial Paper.
dollars, so any difference in the rates reflects risk: A higher TED spread reflects a higher level of risk associated with eurodollar deposits.
The Treasury-to-Eurodollar (TED) spread looks at the difference between the rate on Eurodollar deposits and Treasury notes.
The TED spread--the difference between eurodollar deposits and Treasury bonds, widely thought to reflect concern over international tensions--remains quite low by recent historical standards.
Institutional sweep services have been enhanced to provide for automatic investments from institutional bank accounts into one of three options: repurchase agreements, Eurodollar deposits or a selection of Benchmark Money Market Funds.
The Treasury-to-eurodollar (TED) spread measures the difference between the rate on eurodollar deposits and Treasury notes.
In just 10 years, trading of Eurodollar deposits and futures on Eurodollars by banks and corporate financial institutions has become an indispensable part of the world marketplace.
The TED spread, the yield difference between eurodollar deposits and Treasury bills, often picks up on such concerns because it measures credit risk at international banks without reflecting exchange rate risk; it remains very low.