– Deposits denominated in USD at banks outside the US
– Not under the jurisdiction of the Federal Reserve or SEC
– Eurodollar started in 1950s
– Eurodollar futures started in 1981
– Rate determined by LIBOR
– Single futures contract represents a three-month, $1,000,000 loan
– Biggest source of global funding
– Finances 90% of international trade
– Larger than S&P futures, oil futures, 10yr bond futures
Links
– Eurodollar – Wikipedia
– “Down The Rabbit Hole” – The Eurodollar Market Is The Matrix Behind It All
– Not Good: Eurodollar Futures Curve Sells Off, At The FRONT
– Fire All the Central Bankers While There’s Something to Salvage