Definitions
American Heritage® Dictionary of the English Language, Fourth Edition
- n. A U.S. dollar on deposit with a bank abroad, especially in Europe.
Wiktionary
- n. A deposit, in US dollars, held in a bank outside of the United States
WordNet 3.0
- n. a United States dollar deposited in a European bank and used as an international currency to finance trade
Etymologies
- Euro- + dollar (Wiktionary)
Examples
“The excuses for their behavior sound similar to arguments made after the CME tried to push trading in Eurodollar options from the pit to the screen.”
“By comparing Libor with that indicator and others -- such as the rate on three-month bank deposits known as the Eurodollar rate -- Mr. Peng estimates Libor may be understated by 0.2 to 0.3 percentage points.”
“These price hikes rocked the global economy, while the resulting OPEC riches spurred an explosion in what became known as the Eurodollar markets -- credit markets operating in dollars even though the depositors, financial institutions, and borrowers were rarely U.S. citizens.”
“Price guidance on a $275 million 0. 95-year portion was in the range of 0.15 to 0.20 percentage point over a benchmark rate called Eurodollar synthetic forward, or EDSF.”
“A Eurodollar is a US dollar that is deposited in a bank outside of US control.”
“The Eurodollar ranks as the world's most heavily traded fixed-income future with nearly 511 million contracts traded in 2010, according to data compiled by the Futures Industry Association.”
The Wall Street Journal: CME Takes Aim at NYSE Euronext Interest-Rate Business
“CME is home to Eurodollar futures, contracts that allow banks, hedge funds and other institutions to hedge against shifts in the three-month U.S. dollar London interbank offered rate, or Libor.”
The Wall Street Journal: CME Takes Aim at NYSE Euronext Interest-Rate Business
“One example is an accounting scheme called "The Eurodollar Game" that large banks with offshore branches can use to reduce their reported deposits and thus their required reserves.”
“But we're also looking to the Eurodollar complex of CME, which are three month interval products that look at short term interest rates.”
“In my product, Eurodollar options, we provide liquidity for banks, insurance companies, and, yes, mainly hedge/proprietary funds betting on interest rate moves.”
The Volokh Conspiracy » Derivatives Clearinghouses and Exchanges
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