This describes any international corporate or government bond that is denominated in a 'eurocurrency'. Confusingly, given the name, this in turn is any currency (not just the euro) held outside its country of origin.
So, while most dollars are held in the US, 'eurodollars' can be kept on deposit across the world; the same goes for any major global currency. This means a US company seeking to borrow dollars cheaply can do so by issuing eurobonds in different regions, such as Europe or Asia; it is not limited solely to using the US bond markets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Watch Tim Bennett's video tutorial: What is a eurobond?
-
Rail fares could spike by 5.8% next year – how to save on train travelJuly’s RPI inflation reading tends to determine rail fare hikes in the following year. We look at how much your train tickets could cost, and how to save money
-
'Governments are launching an assault on the independence of central banks'Opinion Say goodbye to the era of central bank orthodoxy and hello to the new era of central bank dependency, says Jeremy McKeown
