Eurodollars Flashcards
1
Q
What are some basics of Eurodollar debt?
A
- Larger than US corp. bond market
- Bonds are denominated in US DOLLARS
- issued OUTSIDE the US (cant buy in the US)
- Issued in bearer form
- pay interest only ONCE a year (not semi-annually)
2
Q
Who can and cannot issue Eurodollars?
A
US corporations, US state and local govt, foreign corporations all CAN
US Federal Government can NOT
3
Q
Why are Eurodollars attractive to US Corporations?
A
- No foreign exchange risk
- lower interest rates than domestic
- no registration with SEC
