UK Site


Street Address:

Have a mortgage/life insurance advisor contact you to discuss your options, fill out information below


The Euromarket

The euromarket is an international market. It is a
stateless market and is defined as money that is held outside the country of
origin. To illustrate US dollars held in Swiss banks would be Eurodollars
and pounds sterling held in Brussels would be eurosterling.
The stateless funds could be borrowed and lent much like
domestic funds, but there are several differences. For example the the funds
are not subjected to the controls of one domestic financial authority.
London is an important market and financial center in the Euromarket. There
is no central marketplace. Funds are arranged over the telephone. The
eurocurrency markets provide an alternative facility for the products and
facilities in the domestic market thus money can be borrowed very short term
in the form of euro-commercial paper or borrowed long term in the form of a
Another difference between the euromarket and the
domestic market. Firstly Euro borrowing is generally unsecured or
nonrecourse. Therefore it is usually the larger companies with well
established branding and good credit ratings can borrow the money. The
distinction betweeen the euro market have been broken down in recent years
and most banks now now deal interchangeable in both the euromarket and the
domestic market. Eurobonds are often listed on the stock exchange which is
usually London.
Since the funds are borrowed nonrecourse the lending firm
often places some restrictions to dispose of the assets representing more
than 30% of the groups total assets within a specified period or sometimes
the net borrowings cannot exceed 2 times adjusted capital and reserves. This
kind of restrictive covenants have become more important to investors
because of the trend towards leveraged buyouts in which a company is bought
with borrowed money and this practice helps protect these investors. </p>
In some cases if a company wants to withdraw an issue
that it has made it can do so however thereoften penal terms associated with
it. This would often occur if the company wants to restructure itself. There
are other similarities between the domestic money and international money
for example there is a trustee to look after the interests of the
bondholders and the bonds are listed on the stock market. Another point is that the companies are not restricted to
borrowing in their own currencies. They may borrow in other currencies such
as Australian dollars, or US dollars. They are also not restricted to
borrowing fixed interest money or borrowing for long periods.





More Property News


Bridging Loans

Business Mortgages

Buy to let Mortgages

Commercial Mortgages

Hedging Interest Rate Risk

Long Term Loans -Debentures

Life Insurance

Loans with Profit Share

Mezzanine Loans

More UK Property News

Options and warrants

Offset Mortgages

Property Development

Stock Market Launch

Swaps to reduce loan costs

Syndicated Loans