What Is Eurocommercial Paper? Eurocommercial paper (ECP) is a form of unsecured, short-term debt that is issued by a bank or corporation in the international money market. Notably, ECPs are denominated in a currency that is different from the domestic currency of the market where the paper—debt security, or bond—is issued. Note that the “euro”
What Is Eurocurrency? Eurocurrency is currency held on deposit by governments or corporations operating outside of their home market. For example, a deposit of U.S. dollars (USD) held in a British bank would be considered eurocurrency, as would a deposit of British Pounds (GBP) made in the United States. Key Takeaways The term eurocurrency refers
What Is a Euro Deposit? A euro deposit is a deposit of foreign funds into a bank that operates within the European banking system. These banks function on the consolidated European currency—the euro. When an external investor deposits foreign currency into one of these banks, they are effectively depositing in euros. By putting money into
What Is a Eurodollar Bond? A Eurodollar bond is a U.S.-dollar denominated bond issued by an overseas company and held in a foreign institution outside both the U.S. and the issuer’s home country. Eurodollar bonds are an important source of capital for multinational companies and foreign governments alike. A Eurodollar bond is a dollar-denominated type
What Is a Euro ETF? A euro ETF is an exchange-traded fund (ETF) that invests in the euro, either directly or through euro-denominated short-term debt. Euro ETFs are often established as currency trusts or grantor trusts—stakeholders have a claim to a specific amount of euros per share. Currency ETFs intend to track the performance of a single currency in the foreign
What Is the Euro LIBOR? Euro LIBOR is the London Interbank Offered Rate (LIBOR) denominated in euros. This is the interest rate that banks offer each other for large, short-term loans made in euros. The rate is fixed once a day by a small group of large London banks but fluctuates throughout the day. This
What Is the European Bank for Reconstruction and Development (EBRD)? The term European Bank for Reconstruction and Development (EBRD) refers to a financial institution established in 1991. The organization was developed to help Eastern European and ex-Soviet countries transitioning into democracies by developing free-market economies after the fall of communism. The EBRD, now headquartered in
What Is the European Banking Authority (EBA)? The European Banking Authority (EBA) is a regulatory body that strives to maintain financial stability throughout the European Union’s (EU) banking industry. It was established in 2010 by the European Parliament, replacing the Committee of European Banking Supervisors (CEBS). Key Takeaways The European Banking Authority (EBA) aims to maintain
What Is European Best Bid and Offer (EBBO)? European Best Bid and Offer (EBBO) is a regulatory mandate that brokers provide current best prices available for buying or selling financial instruments. EBBO is the European equivalent of the National Best Bid and Offer (NBBO) in the U.S. On any exchange, a series of price levels
What is European Callable Bond? European callable bond is a type of bond that can be redeemed by the issuer at a predetermined date prior to the bond’s actual maturity date. Key Takeaways European callable bond is a type of bond that can be redeemed by the issuer at a predetermined date prior to the
