Indeed, the new reality of euromarkets
and pressures from foreign governments over the trade surplus are destabilizing.
Swiss Franc convertible bonds were the most popular instrument of Euromarket
fund raising, as many more companies met their issuance qualifications under the Ministry of Finance's rules.
Glasner notes that there has been nothing stopping banks already from issuing private currencies in the euromarkets
. They have chosen, however, to continue to denominate their transactions in existing national currencies, a choice that may give some indication of the likelihood of new private currencies being developed by the stored value device issuers.(49) Not only are existing national currencies more familiar, but various institutional frameworks--from clearing networks to legal provisions to lender-of-last-resort facilities--are specifically designed for their use.
No one from Euromarket
Limited was available for comment.
Interest rates for three and 12 months are Euromarket
rates, guaranteeing that the deposits are comparable in every respect except currency denomination.
A notable recent transaction was Equitable Life Insurance Company's $205 million transaction in the Euromarket
, involving the securitization of a group of London office properties.
During the bubble, companies were able to go to London's Euromarket
and issue warrant bonds (giving investors the chance to buy rapidly appreciating stock at a set price) at rates as low as 1 percent.
If the inverse ratio (earnings-to-price ratio, adjusted for corporate cross-shareholdings(21) and accounting differences) is taken as a proxy, Japanese corporations had a real cost of capital advantage of around 400 basis points over the United States in the late 1980s according to one estimate.(22) Corporations were also able to issue large amounts of non-collateral convertible and warrant bonds on the Euromarket
, at very low yields.
It thus suggests the abolition of stamp duty on transactions between foreigners and on Euromarket
(25) London has long been considered the center of Euromarket
The transaction was executed as 5-year Euromarket
variable rate, floating rate, and extendible adjustable rate notes.
In March 1991 17 European countries have agreed to move toward videotex interconnection, an essential move given the advent of the Euromarket