Euro note and euro commercial paper

Euro note and euro commercial paper Difference Between The Euro Note Market And The Euro Commercial Paper Market Introduction The Euromarkets are the single most important source of commercial loan funds for the developing countries. The development and operation of Eurocurrency markets have played a very significant role in the post war international financial system. Indeed the explosive growth in international banking and bank lending could not have come about but for the Eurocurrency markets. Simply stated, the term Eurocurrency refers to a currency deposited in a bank outside the home country of that currency. Therefore, Eurocurrencies and Eurocurrency markets are outside the regulatory framework of any monetary authority-the monetary authority of the place where the deposit is made is not concerned with non-residents depositing or borrowing foreign currencies, which does not affect the domestic money supply. It is also outside the control of the monetary authority of the home country of the currency concerned because the transaction takes place outside the country. Inter-Bank Markets Apart from customer transactions, there is an extremely active inter-bank market in Eurocurrencies. Banks acting in the market are continuously trading Eurodollar deposits in the inter-bank market. Such active banks would readily offer a two-way quote-the rate at which they are willing to take a deposit, and the rate at which they are willing to place deposits. The two rates are referred to as bid and offered rates-hence the terms, London inter-bank rate (LIBID) and London inter-bank offered rate (LIBOR)-and the differences between the two represents the trading margin of the bank. Generally, it is of the order 1/8 percent. For calculation of interest on currencies other than the British pound, Eurodollar deposits in particular, the year is reckoned to be of 360 days. Thus, the actual interest would be worked out on the actual number of days divided by 360. Note Issuance Facilities Note Issuance Facility (NIF) is a medium term commitment on the part of underwriting banks which obliges them to purchase any short term notes which the borrower is unable to sell in the market, at an agreed spread over a suitable benchmark. The benchmark could be LIBOR, the T-bill rate, etc. Once a note issuance facility is in place, the borrower can issue short term paper and sell it in the capital market. To the extent the borrower can sell notes at a spread lower than that at which the underwriters are committed to buy, this helps in reducing the cost of borrowing. Another major advantage of a note issuance facility is that, since the notes are short term, this may allow the borrower to access investors who may not be interested in committing medium term funds but may be quite happy to buy short-term paper. The NIF can thus be used to diversify the investor base. To an extent, the NIF is something of a halfway mark between syndicated loans on the one hand and bond issues on the other. With some marginal variations in the basic structure of the facility, NIFs are sometimes also referred to as revolving underwriting facilities (RUFs), note purchase facilities or Euro note facilities. Euro-Notes Euro notes are short term bonds sold by a borrower directly to the investors with or without the underwriting support of the commercial banks. Euro-Commercial Paper Like Euro notes under NIFs, CPs is also short term paper issued by non-bank borrowers. The principal distinguishing feature is that commercial papers are not underwritten by a bank and the issuer, therefore, is one with very high credentials. The paper is usually issued in higher denominations of the order of $ 100,000 and the market is dominated by large professional investors. Although these can be issued in interest -bearing form, they are usually issued at a discount to face-value and quoted in the secondary market on a yield basis. Euro Notes And Euro-Commercial Paper Markets A recent innovation in nonbank short-term credits that bears a strong resemblance to commercial paper is the so-called Euro note. Euro notes are short term notes usually denominated in dollars and issued by corporations and governments. The prefix†Euro† indicates that the notes are issued outside the country in whose currency they are denominated. The interest rates are adjusted each time the notes are rolled over. Euro notes are often called Euro-commercial paper. Typically, though, the name Euro-CP is reserved for those Euro notes that are not underwritten. There are some differences between the U.S. commercial paper and the Euro-CP markets. For one thing, the average maturity of Euro-CP is about twice as long as the average maturity of U.S. CP. Also Euro-CP is actively traded in secondary market, but most U.S. CP is held to maturity by the original investors. Central banks, commercial banks and corporations are important part of the investor base for particular segment s of Euro-CP market; the most important holders of U.S. CP are money market funds, which are not very important in the Euro-CP market. In addition, the distribution of U.S. issuers in the Euro-CP market is of significantly lower than the distribution of U.S. issuers in the U.S. CP market. An explanation of this finding may lie in the importance of banks as buyer of less-than-prime paper in the Euro-CP market. Another important difference in practice between the two markets is in the area of ratings. Only about 45% of active Euro-CP issuers at year end 1986 were rated. Credit ratings in the United States, on the other hand are ubiquitous. This difference may prove transitory, however as investors become accustomed to the concept and the rating agencies facilitate the use of their services.

mark twain Essay -- essays research papers

Samuel Clemens/Mark Twain 1835-1910 Samuel Clemens was born on November 30, 1835 in Florida, Missouri, the sixth of seven children. At the age of four, Sam and his family moved to the small frontier town of Hannibal, Missouri on the banks of the Mississippi River. Missouri, at the time, was a fairly new state (it had gained statehood in 1820) and comprised part of the country's western border. It was also a slave state. Sam's father owned one slave and his uncle owned several. In fact, it was on his uncle's farm that Sam spent many boyhood summers playing in the slave quarters, listening to tall tales and the slave spirituals that he would enjoy throughout his life. In 1847, when Sam was 11, his father died. Shortly thereafter he left school, having completed the fifth grade, to work as a printer's apprentice for a local newspaper. His job was to arrange the type for each of the newspaper's stories, allowing Sam to read the news of the world while completing his work. At 18, Sam headed east to New York City and Philadelphia where he worked on several different newspapers and found some success at writing articles. By 1857, he had returned home to embark on a new career as a riverboat pilot on the Mississippi River. With the outbreak of the Civil War in 1861, however, all traffic along the river came to a halt, as did Sam's pilot career. Inspired by the times, Sam joined a volunteer Confederate unit called the Marion Rangers, but he quit after just two weeks. In search of a new career, Sam headed west in July of 1861, at the invitation of his brother, Orion, who had just been appointed Secretary of the Nevada Territory. Lured by the infectious hope of striking it rich in Nevada's silver rush, Sam traveled across the open frontier from Missouri to Nevada by stagecoach. Along the journey Sam encountered Native American tribes for the first time as well as a variety of unique characters, mishaps and disappointments. These events would find a way into his short stories and books, particularly Roughing It. After failing as a silver prospector, Sam began writing for the Territorial Enterprise, a Virginia City, Nevada newspaper where he used, for the first time, his pen name, Mark Twain. Wanting a change by 1864, Sam headed for San Francisco where he continued to write for local papers. In 1865, Sam's first "big break" came with the publication of his s... ...at his marketable reputation would be ruined. In 1903, after living in New York City for three years, Livy became ill and Sam and his wife returned to Italy where she died a year later. After her death, Sam lived in New York until 1908 when he moved into his last house, "Stormfield", in Redding, Connecticut. In 1909, his middle daughter Clara was married. In the same year Jean, the youngest daughter, died from an epileptic seizure. Four months later on April 21, 1910, Sam Clemens died at the age of 74. Like any good journalist, Sam Clemens/Mark Twain spent his life observing and reporting on his surroundings. In his writings he provided images of the romantic, the real, the strengths and weaknesses of a rapidly changing world. By examining his life and his works, we can read into the past - piecing together various events of the era and the responses to them. We can delve into the American mindset of the late nineteenth century and make our own observations of history, discover new connections, create new inferences and gain better insights into the time period and the people who lived in it. As Sam once wrote, "Supposing is good, but finding out is better."

Betta Value Stores

Betta value stores meeting report: The first issue in the meeting that we discussed was that at the store enterance, there are too few shopping baskets, and any available trolleys are of the wrong type. The store has problems with persuading shoppers to return them to the trolley park at the main entrance of the store. We had quite a debate on this issue as Zara and Ahmed had quite strong ideas. Ahmed had the idea of nectar points and that every time you put your trolley back you will get points on your card. And in the end you can trade your points for a item sold in the store.In the end we decided that this would be too much of a hassle so instead we went with Zara’s idea. Which was to firstly buy more trolleys so there are plenty available but to buy the ones you have to put a pound in. This way people will return their trolleys so they can have their pound back. We thought a disadvantage for this would be that we would have to replace all existing trolleys with ones which have slots for moneys. In the end we decided this would be a good thing to invest in as it will be very beneficial in the end. The second issue that we discussed was that staff are seen to be unhelpful.That checkout operators do not know the location of items, people are still seen to be stacking shelves after the store has opened for the public and that younger employees are offhand with dealing with the public. For the solution of this first problem about people carry on stacking the shelves we came to a clean conclusion of started stacking shelves earlier and for them to train to stack the shelves faster. The solution to the checkout operators we were torn between two. One idea was that we give a sheet of paper to the checkout operators outlining where most of the goods in the store are located.The other idea we had was that we have a touch screen computer in which you type in the key words of the item and it will tell you its location. We said that initially it would cost quite a bit but in the end it well be very beneficial. Thirdly we discussed the fact that most customers suggested that we should offer a lot more services rather then just selling household goods and groceries. Some services and facilities they suggested included having lottery kiosks, newspaper stalls, shoe repairs, cash points etc.We had quite a debate about this but one thing we all agreed at was that we would offer some of these services rather all of them and we agreed that this would be a top priority as we would not want to lose customers to other businesses who provide these services. In the end we all agreed on the fact that we should for now work towards getting a lottery kiosks and stand for newspaper. We would see if this would improve the business as a whole and meet customer needs after assessing this we would re-evaluate of what other services we should provide for customers.Another important issue that was on the minds of a lot of customers was that no allowances are made for shoppers who have mobility problems or small children or who speak little English. At first we were lost as to solve this problem and could not generate many solutions. In the end though we decided that we would employ some employees that were bilingual and maybe put signs up that are in other languages as well as English for all to understand. We also decided that a ramp out side of the building would be appropriate.

The Evaluation of the Success of the European Monetary Union Free Essay Example, 2250 words

The Euro has managed to play a less external parity as compared to the various currencies that it eliminated. The introduction of the euro quickly transformed the European financial markets. For instance, government bonds were rapidly integrated into the bond market. A notable record of the growth of the corporate market was that of 1999 when an impressive rise of 300% was recorded in euro-denominated issuances. From 1999, the proportion that the euro acquired in the total outstanding international debt securities has been steadily rising from 21% to 31%. It is estimated that approximately a quarter of the entire foreign exchange reserves are currently in Euros (Chang, 1999 p. 18). Although the dollar is still regarded as the world s most vital currency, the euro has grown favorable to take second place, and the trend is expected to increase in the near future. The aspect of the European Monetary Union that has generated the worst publicity is the stability and growth pact. Contrary to the popular belief, the aspect was not part of the original plan that was created at the Maastricht Treaty. We will write a custom essay sample on The Evaluation of the Success of the European Monetary Union or any topic specifically for you Only $17.96 $11.86/page Recently, five European countries were subjects of the excessive deficit procedure. Only Greece, whose deficit ratio in 2004 was 6%, had a deficit ratio that was marginally above 3%. The treaty that gave birth to the European Monetary Union points out that, what really matters is the maintenance of the government's financial position.