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Eurodollars are U.S. dollars deposited in commercial banks outside the United States and futures tied to the interest rates paid on them are among the most-trad
by aswanson 9y ago
Eurodollars are U.S. dollars deposited in commercial banks outside the United States and futures tied to the interest rates paid on them are among the most-traded contracts in the world.
Even back then, they had crazy derivatives.
- jnordwick 9y agoIts not crazy at all. A eurodollar contract gives a purer valuation of the dollar since it doesn't need to consider the added cost depository requirements. Then like now, they are only crazy if you don't understand them.
- aswanson 9y agoSo it's like a more speculative bet on the overseas bank being able to make riskier loans with a higher return profile?