Sentences with word «eurodollar»
Our interest is in eurodollar futures contracts.
investorsinsight.com
Trading in Eurodollar futures is extensive, and the market for them tends to be very liquid.
Since Eurodollar deposits don't have FDIC insurance, they aren't risk - free, but they can offer an alternate investment with a competitive yield for your company's short - term needs.
Jumbo Certificates of Deposit Repurchase Agreements Eurodollar Time Deposits U.S. Treasury + Government Agency Securities Commercial Paper Foreign Exchange Risk Management Managing Cash Effectively
Also, some banks needed quick liquidity from the unregulated eurodollar markets.
Front month Eurodollar contracts should continue to push towards 100.00 in a series of painfully slow cautious rallies, punctured by periods of sideways consolidation with small dips.
The more confident we are of that, the more we can prove the predictive power of eurodollar futures or treasury yields.
The spread, the difference between the interest rates for three - month U.S. Treasuries contracts and the three - month Eurodollars contract, hit 4.63 percent on October 10 — its highest level in decades.
As it stands right now, the Treasury - Eurodollar spread [TED spread], is at 180 basis points, up from 96 basis points (or so — don't have access to a Bloomberg Terminal).
Repurchase Agreements Eurodollar Time Deposits U.S. Treasury + Government Agency Securities Commercial Paper Interest Rate Risk Management Foreign Exchange Risk Management Managing Cash Effectively
In reality, however, we can not lend and borrow at the same government rate so a more realistic, or «tradable,» rate may be the yield on Eurodollar futures, for example.
As it stands, yesterday, at 2.40 %, the TED [Treasury - Eurodollar] spread is the highest it has been since the crash in 1987, when it hit nearly 3 %.
Prior to the revisions, only domestic banks reported Eurodollar transactions, and there was no reporting by IBFs.
A macro trade entirely built around the framework of «US domestic growth and reflation» + pro-business policy mix + a sprinkling of «animal spirits» = long Spooz / long Russell / long value vs growth / long cyclicals vs defensives / short FY / short Eurodollar futs (largest net spec shorts ever recorded per last Friday's CFTC data) / long CNH / long copper vs short gold / short EM / short EUR / short Yen» again almost singularly hinges on the Dollar.
Now the futures market assumes that the Fed will raise its target rate in the course of this year, so the LIBOR rate on which eurodollar futures settle will increase by 1.22 percentage points between January and December.
The index also includes Eurodollar and Euro - Yen corporate bonds; Canadian government, agency and corporate securities; and USD investment grade 144A securities.
In particular, since all tri-party repo is unwound at the same time, there is no possibility of early return of funds, which, as I mentioned earlier, is a significant benefit some federal funds and Eurodollar borrowers are able to offer.
In 2017, 190 million mid-curve Eurodollar options traded on CME Group, an increase of 49.5 million contracts or 35.2 % from 2016.
As with other prices, if we are interested in what's going on with dollar exchange values (not be confused with eurodollars, the shadow conditions behind everything) we have to start with the futures market.
Here is the scary chart of the TED spread (the difference between US dollar eurodollar funding and American government treasury bills) that is being passed around.
The TED, or Treasury Eurodollar, spread is calculated by subtracting the interest rate on treasury bills from the three - month dollar LIBOR.
Anytime the spread between Treasury bill yields and Eurodollar yields (offshore dollar bank lending rates) gets too great, there is a lack of confidence in the banking system.
Singapore banks attract funds with rates comparable to those paid for Eurodollar deposits, plus two advantages that Hong Kong and Tokyo don't offer: tax exemption for depositors and strict secrecy.
The story of the asset bubbles is one of eurodollars alone.
Jumbo Certificates of Deposit Eurodollar Time Deposits U.S. Treasury + Government Agency Securities Commercial Paper Interest Rate Risk Management Foreign Exchange Risk Management Managing Cash Effectively
Some attribute the low TED (3 - month Eurodollar less Treasury yield) spread to risk - seeking, but I think that banks don't have many uses for surplus cash now.
Eurodollars U.S. dollars on deposit with a bank outside of the United States and, consequently, outside the jurisdiction of the United States.
Examples include treasury bills, negotiable CDs, commercial paper, banker's acceptances, repurchase agreements, and eurodollar CDs.
Analyze the spread between Eurodollar futures and Fed Fund futures over time - from one week to one year.
the rate that international banks dealing in Eurodollars charge each other for large loans.
Jumbo Certificates of Deposit Repurchase Agreements Eurodollar Time Deposits U.S. Treasury + Government Agency Securities Commercial Paper Foreign Exchange Risk Management
We're past the CP rollover problem, but the TED [Treasury - Eurodollar] spread is 135 bp now, and that ain't calm.
Jumbo Certificates of Deposit Repurchase Agreements Eurodollar Time Deposits Commercial Paper Interest Rate Risk Management Foreign Exchange Risk Management Managing Cash Effectively
(Eurodollar contracts settle on the London interbank offering rate, or Libor, and have historically traded at about 25 basis points above the Fed's overnight rate.)
The prices of Eurodollars are quite responsive to Fed policy, inflation, and economic indicators.
With the Treasury - Eurodollar spread at over 170 basis points, the big banks don't trust each other.
However, when the deliverable commodity is not in plentiful supply or when it does not yet exist — for example on crops before the harvest or on Eurodollar Futures or Federal funds rate futures (in which the supposed underlying instrument is to be created upon the delivery date)-- the futures price can not be fixed by arbitrage.
Long positions in eurodollar futures have been one of our most successful investments in recent years.
Issued by our Grand Cayman branch, Eurodollar deposits don't have FDIC insurance, but they can offer an alternate investment with a competitive yield for your company's investment needs.