BizTerm Definition
Euromarket
Full Definition

The Euromarket is an international capital market which, until recently, was concerned mainly with raising debt rather than equity capital. The term 'Euro' is an historical one, denoting the issue of a security in a currency other than that of the country of residence of the issuer. The market's most important characteristic is that securities are sold internationally rather than within the confines of one particular country. The securities will also be sold largely outside the country of residence of the borrower. Debt securities issued in the Euromarkets are issued in bearer form - that is, investors do not have to be registered (as in the domestic US bond market) and ownership is evidenced by physical possession Interest is payable to the holder presenting the coupon to the paying agent for that particular issue, The coupon is detachable from the bearer note, This can be an advantage to investors who wish to retain anonymity. Eurobond issues pay interest gross and the effect of any withholding taxes would be borne by the issuer. Euromarket products Include: Fixed rate eurobonds Floating rate eurobonds Euronotes Eurocommercial paper Sterling commercial paper Negotiable certificates of deposit.


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