ACCA AFM Syllabus A. Role Of The Senior Financial Adviser - The Euromarkets - Notes ^{5 / 11}

Eurocurrency

refers to a currency held on deposit outside the country of its origin eg Eurodollars are $US held in a bank account outside the USA.

Eurobonds

are bonds issued (for 3 to 20 years) simultaneously in more than one country. 

They usually involve a syndicate of international banks and are denominated in a currency other than the national currency of the issuer. Interest is paid gross.

Eurocurrency loans

are bank loans made to a company, denominated in a currency of a country other than that in which they are based. 

The term of these loans can vary from overnight to the medium term.

Euronotes

are issued by companies on the Eurobond market. 

Companies issue short-term unsecured notes promising to pay the holder of the Euronote a fixed sum of money on a specified date or range of dates in the future.

Euroequity market

refers to the international equity market where shares in US or Japanese companies are placed on as overseas stock exchange (eg London or Paris).

These have had only limited success, probably due to the absence of a effective secondary market reducing their liquidity.