Eurodollar Rate definition: Copy, customize, and use instantly
Introduction
The term "Eurodollar Rate" refers to the interest rate at which US dollar-denominated deposits are offered by banks outside the United States. It is essential for determining the cost of borrowing in US dollars in international markets, providing a benchmark for global financial transactions, including loans, derivatives, and international trade.
Below are various examples of how "Eurodollar Rate" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Eurodollar Rate" as an interest rate for US dollar deposits outside the US
This definition ties "Eurodollar Rate" to the interest rate on deposits held in foreign banks.
"Eurodollar Rate" means the interest rate at which US dollar-denominated deposits are offered by banks located outside the United States, used as a benchmark for short-term international lending and borrowing.
Definition of "Eurodollar Rate" as a financial reference rate
This definition connects "Eurodollar Rate" to its role in global financial markets.
"Eurodollar Rate" refers to the interest rate that financial institutions charge each other for short-term loans in US dollars outside the United States, often serving as a key reference rate for various financial instruments.
Definition of "Eurodollar Rate" as the LIBOR-based rate for US dollar loans
This definition links "Eurodollar Rate" to its association with LIBOR.
"Eurodollar Rate" means the interest rate based on the London Interbank Offered Rate (LIBOR) for US dollar-denominated loans, reflecting the cost of borrowing US dollars in international markets and influencing global lending rates.
Definition of "Eurodollar Rate" as a short-term lending rate for global markets
This definition applies "Eurodollar Rate" to global lending conditions.
"Eurodollar Rate" refers to the short-term interest rate at which US dollars are borrowed or lent in international markets, serving as a key indicator of global liquidity and the cost of borrowing in US dollars.
Definition of "Eurodollar Rate" as a rate for foreign exchange transactions
This definition ties "Eurodollar Rate" to currency exchange markets.
"Eurodollar Rate" means the interest rate applied to US dollar deposits held in foreign banks, used as a benchmark in foreign exchange transactions to price US dollar-denominated instruments across global markets.
Definition of "Eurodollar Rate" as a financial instrument benchmark
This definition connects "Eurodollar Rate" to its role in pricing financial instruments.
"Eurodollar Rate" refers to the rate used to price and settle a variety of financial instruments, including futures, swaps, and options, which are based on the borrowing cost of US dollars in international markets.
Definition of "Eurodollar Rate" as a risk indicator for global borrowing costs
This definition links "Eurodollar Rate" to financial risk analysis.
"Eurodollar Rate" means the interest rate at which US dollar loans are offered in foreign markets, often used as a risk indicator for the cost of borrowing US dollars globally, reflecting the health of international financial markets.
Definition of "Eurodollar Rate" as a variable rate in international financing
This definition applies "Eurodollar Rate" to fluctuating financial conditions.
"Eurodollar Rate" refers to the fluctuating interest rate that determines the cost of borrowing US dollars outside the United States, influencing international financing conditions and serving as a benchmark for floating-rate debt.
Definition of "Eurodollar Rate" as a key reference for international bond markets
This definition ties "Eurodollar Rate" to global bond markets.
"Eurodollar Rate" means the rate used as a benchmark for pricing international bonds, especially those issued in US dollars by foreign entities, serving as a basis for determining the interest on such debt securities.
Definition of "Eurodollar Rate" as a tool for managing interest rate exposure
This definition connects "Eurodollar Rate" to financial hedging.
"Eurodollar Rate" refers to the interest rate used by businesses and financial institutions to manage their exposure to interest rate fluctuations, often through derivatives like interest rate swaps or futures.
Definition of "Eurodollar Rate" as a measure of US dollar liquidity in global markets
This definition links "Eurodollar Rate" to liquidity management.
"Eurodollar Rate" means the rate at which US dollars are available for lending in international markets, serving as a key measure of US dollar liquidity and influencing global borrowing costs for corporations and governments.
Definition of "Eurodollar Rate" as a basis for cross-border lending
This definition connects "Eurodollar Rate" to cross-border transactions.
"Eurodollar Rate" refers to the interest rate used as a reference for cross-border lending, particularly for loans denominated in US dollars to borrowers outside the United States, reflecting the cost of credit in global markets.
Definition of "Eurodollar Rate" as a key economic indicator for global finance
This definition ties "Eurodollar Rate" to broader economic analysis.
"Eurodollar Rate" means the interest rate that reflects the economic conditions in global markets, influencing borrowing costs and providing an indicator for economic trends, particularly in relation to US dollar liquidity.
Definition of "Eurodollar Rate" as a benchmark for syndicated loans
This definition ties "Eurodollar Rate" to large-scale lending arrangements.
"Eurodollar Rate" means the interest rate used as a reference for syndicated loans, where multiple lenders provide US dollar-denominated credit facilities to international borrowers, ensuring uniformity in interest rate calculations.
Definition of "Eurodollar Rate" as a pricing mechanism for trade finance
This definition connects "Eurodollar Rate" to trade-related financing.
"Eurodollar Rate" refers to the rate used as a benchmark for trade finance instruments, such as letters of credit or export financing, determining the cost of borrowing in US dollars for international trade transactions.
Definition of "Eurodollar Rate" as an interbank lending rate
This definition links "Eurodollar Rate" to bank-to-bank transactions.
"Eurodollar Rate" means the interest rate at which banks lend US dollar-denominated funds to one another in offshore markets, serving as a key indicator of short-term liquidity in the global banking system.
Definition of "Eurodollar Rate" as a reference for floating-rate notes
This definition applies "Eurodollar Rate" to debt instruments.
"Eurodollar Rate" refers to the rate used as the benchmark for floating-rate notes (FRNs), determining the periodic interest payments on debt securities tied to the rate of US dollar deposits in international markets.
Definition of "Eurodollar Rate" as an alternative to domestic interest rates
This definition ties "Eurodollar Rate" to offshore borrowing advantages.
"Eurodollar Rate" means the interest rate on US dollar deposits held outside the United States, often serving as an alternative to domestic interest rates for borrowers seeking potentially lower financing costs.
Definition of "Eurodollar Rate" as a cost of carry benchmark
This definition connects "Eurodollar Rate" to derivative markets.
"Eurodollar Rate" refers to the interest rate used to calculate the cost of carry in derivative transactions, such as futures or options, where the cost of holding a position is tied to the rate on offshore US dollar deposits.
Definition of "Eurodollar Rate" as a determinant for hedging strategies
This definition links "Eurodollar Rate" to risk management tools.
"Eurodollar Rate" means the rate used by financial institutions and corporations to design hedging strategies, mitigating exposure to interest rate fluctuations in international US dollar-denominated transactions.
Definition of "Eurodollar Rate" as a reference for treasury operations
This definition applies "Eurodollar Rate" to corporate treasury functions.
"Eurodollar Rate" refers to the interest rate used by corporate treasurers to manage cash flows, optimize liquidity, and calculate the cost of borrowing US dollars in offshore markets.
Definition of "Eurodollar Rate" as a basis for credit spread calculations
This definition ties "Eurodollar Rate" to credit pricing.
"Eurodollar Rate" means the interest rate used as the base for calculating credit spreads, determining the premium borrowers pay above the benchmark rate for loans denominated in US dollars in international markets.
Definition of "Eurodollar Rate" as a factor in global economic policy
This definition connects "Eurodollar Rate" to macroeconomic considerations.
"Eurodollar Rate" refers to the interest rate that influences global monetary policy decisions, reflecting the cost of US dollar liquidity in international markets and impacting cross-border capital flows.
Definition of "Eurodollar Rate" as a key indicator for financial institutions
This definition links "Eurodollar Rate" to bank performance.
"Eurodollar Rate" means the rate used by financial institutions as a benchmark to evaluate their cost of funding, profitability of loans, and overall performance in international US dollar-denominated transactions.
Definition of "Eurodollar Rate" as a tool for cross-currency financing
This definition applies "Eurodollar Rate" to multi-currency lending.
"Eurodollar Rate" refers to the interest rate that supports cross-currency financing arrangements, where the borrowing and repayment of US dollars are tied to foreign exchange transactions and international market conditions.
Definition of "Eurodollar Rate" as a liquidity benchmark for multinational corporations
This definition ties "Eurodollar Rate" to corporate finance.
"Eurodollar Rate" means the rate used by multinational corporations to benchmark the cost of borrowing US dollars for global operations, capital expenditures, and working capital management.
Definition of "Eurodollar Rate" as a determinant for interest rate swaps
This definition ties "Eurodollar Rate" to derivative instruments.
"Eurodollar Rate" means the interest rate used as a reference in interest rate swap agreements, where parties exchange fixed-rate payments for floating-rate payments based on the rate for US dollar deposits in offshore markets.
Definition of "Eurodollar Rate" as a benchmark for corporate loans
This definition connects "Eurodollar Rate" to corporate financing.
"Eurodollar Rate" refers to the rate used as a benchmark for corporate loans denominated in US dollars, determining the interest costs for businesses borrowing in international financial markets.
Definition of "Eurodollar Rate" as a measure of international credit conditions
This definition links "Eurodollar Rate" to credit market analysis.
"Eurodollar Rate" means the interest rate that reflects the availability and cost of US dollar credit in international markets, serving as a barometer for global liquidity and credit conditions.
Definition of "Eurodollar Rate" as a reference for leveraged financing
This definition applies "Eurodollar Rate" to leveraged transactions.
"Eurodollar Rate" refers to the interest rate used in leveraged financing agreements, providing a benchmark for calculating borrowing costs in highly leveraged transactions involving US dollar-denominated debt.
Definition of "Eurodollar Rate" as a global funding benchmark
This definition ties "Eurodollar Rate" to international funding.
"Eurodollar Rate" means the rate that serves as a global benchmark for funding operations in US dollars, particularly for multinational banks and corporations operating in multiple jurisdictions.
Definition of "Eurodollar Rate" as a determinant for export financing costs
This definition connects "Eurodollar Rate" to trade finance.
"Eurodollar Rate" refers to the interest rate used to calculate the cost of export financing, influencing the pricing of loans for businesses engaged in international trade transactions.
Definition of "Eurodollar Rate" as a floating-rate benchmark for investment products
This definition links "Eurodollar Rate" to investment portfolios.
"Eurodollar Rate" means the reference rate for floating-rate investment products, including mutual funds and exchange-traded funds, that focus on generating returns tied to offshore US dollar deposit rates.
Definition of "Eurodollar Rate" as a measure of systemic risk
This definition applies "Eurodollar Rate" to risk assessment.
"Eurodollar Rate" refers to the interest rate that serves as an indicator of systemic risk in the global financial system, reflecting the cost of borrowing US dollars in offshore markets under varying economic conditions.
Definition of "Eurodollar Rate" as a driver for monetary policy adjustments
This definition ties "Eurodollar Rate" to central bank policies.
"Eurodollar Rate" means the rate that influences monetary policy adjustments by central banks, as it reflects the cost of US dollar borrowing in international markets and impacts global economic stability.
Definition of "Eurodollar Rate" as a determinant for debt refinancing
This definition connects "Eurodollar Rate" to refinancing decisions.
"Eurodollar Rate" refers to the interest rate used by borrowers to assess the viability of refinancing existing US dollar-denominated debt, often tied to market conditions in offshore financial markets.
Definition of "Eurodollar Rate" as a gauge for international liquidity
This definition links "Eurodollar Rate" to global market liquidity.
"Eurodollar Rate" means the interest rate that reflects the availability of US dollar liquidity in international financial markets, serving as a critical factor for businesses and governments engaged in global transactions.
Definition of "Eurodollar Rate" as a reference for private equity financing
This definition applies "Eurodollar Rate" to private equity deals.
"Eurodollar Rate" refers to the rate used in private equity financing agreements, providing a benchmark for calculating the cost of leveraged buyouts and other investments involving US dollar-denominated loans.
Definition of "Eurodollar Rate" as a factor in international bond pricing
This definition ties "Eurodollar Rate" to fixed-income securities.
"Eurodollar Rate" means the rate that serves as a basis for pricing international bonds denominated in US dollars, influencing the yield and interest payments on such securities.
Definition of "Eurodollar Rate" as a benchmark for structured financial products
This definition connects "Eurodollar Rate" to structured finance.
"Eurodollar Rate" refers to the rate used as a benchmark for pricing structured financial products, including collateralized debt obligations and asset-backed securities tied to US dollar cash flows.
Definition of "Eurodollar Rate" as a measure of offshore financial activity
This definition links "Eurodollar Rate" to offshore markets.
"Eurodollar Rate" means the interest rate that reflects the level of financial activity in offshore markets, indicating the cost of borrowing US dollars outside the United States and its impact on global capital flows.
Definition of "Eurodollar Rate" as a reference for private debt markets
This definition ties "Eurodollar Rate" to private debt financing.
"Eurodollar Rate" means the interest rate used as a benchmark for private debt markets, influencing the cost of borrowing and lending US dollars in non-public transactions, particularly in private placements and loans.
Definition of "Eurodollar Rate" as a factor in hedge fund strategies
This definition connects "Eurodollar Rate" to hedge fund operations.
"Eurodollar Rate" refers to the interest rate used by hedge funds in their strategies to manage exposure to currency fluctuations, interest rates, and leverage, with a focus on US dollar-denominated assets in offshore markets.
Definition of "Eurodollar Rate" as an indicator for global bond yields
This definition links "Eurodollar Rate" to bond markets.
"Eurodollar Rate" means the interest rate that serves as an indicator for global bond yields, impacting the pricing of debt securities and providing a benchmark for yield curve analysis across various international bond markets.
Definition of "Eurodollar Rate" as a pricing tool for floating-rate loans
This definition applies "Eurodollar Rate" to loan pricing.
"Eurodollar Rate" refers to the interest rate used in the pricing of floating-rate loans, where interest payments fluctuate in line with the rate for US dollar deposits in international markets.
Definition of "Eurodollar Rate" as a benchmark for mortgage-backed securities
This definition ties "Eurodollar Rate" to asset-backed securities.
"Eurodollar Rate" means the interest rate used as a reference for the pricing of mortgage-backed securities (MBS) and other asset-backed securities, determining the coupon rates and yields for investors.
Definition of "Eurodollar Rate" as a tool for evaluating interest rate volatility
This definition connects "Eurodollar Rate" to risk analysis.
"Eurodollar Rate" refers to the interest rate used by financial analysts to evaluate interest rate volatility in offshore markets, serving as an indicator of market expectations for US dollar-denominated credit costs.
Definition of "Eurodollar Rate" as a reference for cross-border lending
This definition links "Eurodollar Rate" to international credit arrangements.
"Eurodollar Rate" means the interest rate used as a benchmark for cross-border lending transactions, where US dollar loans are extended to borrowers in non-US jurisdictions, influencing the pricing of such loans.
Definition of "Eurodollar Rate" as a determinant for foreign exchange hedging
This definition ties "Eurodollar Rate" to currency risk management.
"Eurodollar Rate" refers to the interest rate used in foreign exchange hedging strategies, where businesses and financial institutions adjust their exposures to currency risk by relying on the rate for US dollar borrowing in offshore markets.
Definition of "Eurodollar Rate" as a gauge for liquidity premiums
This definition connects "Eurodollar Rate" to market liquidity.
"Eurodollar Rate" means the interest rate that reflects liquidity premiums in the global market, with higher premiums indicating lower liquidity for US dollar assets in offshore markets and influencing borrowing costs for borrowers.
Definition of "Eurodollar Rate" as a key factor in inflation hedging
This definition applies "Eurodollar Rate" to inflation risk management.
"Eurodollar Rate" refers to the rate used as a key input in inflation hedging strategies, where the cost of US dollar borrowing in international markets plays a role in protecting against rising inflationary pressures.
Definition of "Eurodollar Rate" as a pricing factor for short-term debt instruments
This definition links "Eurodollar Rate" to money market instruments.
"Eurodollar Rate" means the interest rate that serves as a pricing factor for short-term debt instruments, such as Treasury bills, repurchase agreements, and commercial paper, where yields are adjusted based on the rate for US dollar deposits offshore.
Definition of "Eurodollar Rate" as a risk factor for emerging markets
This definition ties "Eurodollar Rate" to emerging market financing.
"Eurodollar Rate" refers to the interest rate that affects emerging market economies by influencing the cost of borrowing US dollar-denominated debt in international markets, which may expose these economies to currency and interest rate risks.
Definition of "Eurodollar Rate" as a performance indicator for financial products
This definition connects "Eurodollar Rate" to portfolio management.
"Eurodollar Rate" means the interest rate used by portfolio managers and investors as a performance indicator, evaluating the returns on financial products linked to offshore US dollar deposits, such as fixed-income funds or structured notes.
Definition of "Eurodollar Rate" as a factor in corporate treasury risk management
This definition applies "Eurodollar Rate" to corporate financial planning.
"Eurodollar Rate" refers to the interest rate used by corporate treasurers as part of their risk management strategies, influencing decisions around hedging, liquidity management, and financing costs for multinational operations.
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