Eurodollar

Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

Related to Eurodollar: Eurodollar Bond, Eurodollar Deposits

Eurodollar

Refers to a certificate of deposit in U.S. dollars in a bank that is not located in the U.S. Most of the Eurodollar deposits are in London banks, but Eurodeposits may be anywhere other than the U.S. Similarly, a Euroyen or Euro DM deposit represents a CD in yen or DM outside Japan and Germany, respectively.

Eurodollar

U.S. dollar deposits in banks outside the jurisdiction of the Federal Reserve; that is, outside the United States. Eurodollar futures contracts, which are based on eurodollar desposits, are a highly liquid investment traded on the Chicago Mercantile Exchange. Prices are determined by forecasting the three month USD LIBOR interest rate. Likewise, eurodollar sweeps are a popular short-term investment for large businesses.

The term has nothing to do with the euro, and the prefix "euro-" is used more generally to refer to deposits outside the jurisdiction of the local central bank, e.g. "euroruble."

Eurodollar

A dollar-denominated deposit made in foreign banks or foreign branches of U.S. banks. Depositors sometimes transfer their funds to European banks in order to take advantage of higher interest rates. The Eurodollar is one type of Eurocurrency.

Eurodollar.

Eurodollars are US currency deposited in banks outside the United States but not always in Europe. Certain debt securities are issued in eurodollars and pay interest in US dollars into non-US bank accounts. Eurodollars are a form of eurocurrency.

Eurodollar

see EUROCURRENCY MARKET.

References in periodicals archive ?

This Appendix provides further details on Eurodollar contracts and the estimation of their options-implied probability density function.

How Do FOMC Projections Affect Policy Uncertainty?

This Note analyzes the economic and sovereign risks posed by the continued lack of regulation of the Eurodollar market.

The monetary fifth column: the Eurodollar threat to financial stability and economic sovereignty

In each of the two graphs, the diagonal line from the lower left to the upper right represents a line of perfect forecasts--if all the points lay along this line, the eurodollar futures market would never have made any errors in forecasting the change in the eurodollar yield over the succeeding three (six) months.

Understanding the fed

We use the interest rate on Treasury bill futures contracts as a benchmark rate and use the interest rate on eurodollar futures contracts as a measure of deposit rates for depository institutions.

Reserve requirements: a modern perspective

Next, we test for evidence of liquidity effects at a weekly frequency in both the Treasury and swap (Eurodollar) yield curves.

The effect of interest rate options hedging on term-structure dynamics

And he has moved into Britain, making a new fortune with his Eurodollar and Alamo, firms - the biggest car rental set-up in the UK.

DUSTMAN CLEANS UP pounds 1 BILLION!; He was a college dropout in the 60s He bought an old garbage truck He built up three of the world's biggest firms And now he's making a new fortune in Britain

Eurodollar bosses will split the cash from a pounds 95 million takeover by US firm Republic Industries and keep their jobs.

CAR-HIRE BOSSES DRIVE pounds 12m DEAL

market and in the Eurodollar market, the latter typically being represented by dollar yields in London.

The U.S. dollar in global money markets: a multivariate cointegration analysis

Expectations of monetary tightening were reflected in forward rates, with three-month rates on December Eurodollar futures rising nearly 60 basis points from April 1 to mid-June.

Treasury and Federal Reserve foreign exchange operations

Based on the demand for alternative pricing structures, many corporate borrowers now have the option of tying their loan rates to the eurodollar market.

Loan pricing options: advantages and disadvantages for corporate borrowers

For example, if an Irish company owned by a Japanese parent borrowed funds on the Eurodollar market from unrelated lenders and loaned the funds to a U.S.

Proposed new anti-conduit regulations

In addition, on other classes of bank accounts, short-term Eurodollar rates more appropriately reflect recent banking practices than the prime rate used in previous calculations; consequently, Eurodollar rates are substituted into the calculation.