International Debt Markets ■The Euronote market: Euronotes and Euronote facilities are short to medium in term and are either underwritten and non-underwritten Euro-commercial paper is a short-term debt obligation of a corporation or bank (usually denominated in US dollars) Euro medium-term notes is a new entrant to the world's debt markets,which bridges the gap between Euro-commercial paper and a longer- term and less flexible international bond 制计价贸易大考
International Debt Markets The Euronote market: Euronotes and Euronote facilities are short to medium in term and are either underwritten and non-underwritten Euro-commercial paper is a short-term debt obligation of a corporation or bank (usually denominated in US dollars) Euro medium-term notes is a new entrant to the world’s debt markets, which bridges the gap between Euro-commercial paper and a longerterm and less flexible international bond
International Debt Markets Bank loans and syndications: International bank loans have traditionally been sourced in the Eurocurrency markets,there is a narrow interest rate spread between deposit and loan rates of less than 1%. Eurocredits are bank loans to MNEs,sovereign governments,international institutions,and banks denominated in Eurocurrencies and extended by banks in countries other than the country in whose currency the loan is denominated. The syndication of loans has enabled banks to spread the risk of very large loans among a number of banks (this is significant for MNEs as they usually need credit in an amount larger than a single bank's loan limit)
International Debt Markets Bank loans and syndications: International bank loans have traditionally been sourced in the Eurocurrency markets, there is a narrow interest rate spread between deposit and loan rates of less than 1%. Eurocredits are bank loans to MNEs, sovereign governments, international institutions, and banks denominated in Eurocurrencies and extended by banks in countries other than the country in whose currency the loan is denominated. The syndication of loans has enabled banks to spread the risk of very large loans among a number of banks (this is significant for MNEs as they usually need credit in an amount larger than a single bank’s loan limit)
Exhibit 4 Comparative Spreads Between Lending and Deposit Rates in the Eurodollar Market Interest Rate U.S.dollar 7.000% Loan rate 4.625 Eurodollar Loan Rate U.S.dollar Spread 0f4.000% Eurodollar Spread of 0.500% 4.125 Eurodollar Deposit Rate U.S.dollar 3.000% Deposit Rate 证制纤将黄多大考
Exhibit 4 Comparative Spreads Between Lending and Deposit Rates in the Eurodollar Market 3.000 % U.S. dollar 7.000 % Loan Rate U.S. dollar Deposit Rate U.S. dollar Spread of 4.000% Eurodollar Loan Rate Eurodollar Deposit Rate Eurodollar Spread of 0.500% Interest Rate 4.625 % 4.125 %