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Euro-medium term note (Euro-MTN)

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Definition of Euro-medium term note (Euro-MTN)

Euro-medium Term Note (Euro-MTN) Image 1

Euro-medium term note (Euro-MTN)

A non-underwritten euronote issued directly to the market. euro-
mtns are offered continuously rather than all at once as a bond issue is. Most euro-mtn maturities are
under five years.



Related Terms:

BAN (Bank anticipation notes)

notes issued by states and municipalities to obtain interim financing for
projects that will eventually be funded long term through the sale of a bond issue.


Coefficient of determination

A measure of the goodness of fit of the relationship between the dependent and
independent variables in a regression analysis; for instance, the percentage of variation in the return of an
asset explained by the market portfolio return.


coefficient of determination

a measure of dispersion that
indicates the “goodness of fit” of the actual observations
to the least squares regression line; indicates what proportion
of the total variation in y is explained by the regression model


Convertible eurobond

A eurobond that can be converted into another asset, often through exercise of
attached warrants.


Credit Terms

Conditions under which credit is extended by a lender to a borrower.



Demand master notes

Short-term securities that are repayable immediately upon the holder's demand.


Deterministic models

Liability-matching models that assume that the liability payments and the asset cash
flows are known with certainty. Related: Compare stochastic models


Euro-medium Term Note (Euro-MTN) Image 2

Disintermediation

Withdrawal of funds from a financial institution in order to invest them directly.


Documented discount notes

Commercial paper backed by normal bank lines plus a letter of credit from a
bank stating that it will pay off the paper at maturity if the borrower does not. Such paper is also referred to as
LOC (letter of credit) paper.


Euro CDs

CDs issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all euro CDs
are issued in London.


Euro-commercial paper

Short-term notes with maturities up to 360 days that are issued by companies in
international money markets.


Euro lines

Lines of credit granted by banks (foreign or foreign branches of U.S. banks) for eurocurrencies.


Euro-note

Short- to medium-term debt instrument sold in the eurocurrency market.


Euro straight

A fixed-rate coupon eurobond.


Eurobank

A bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans.


Eurobond

A bond that is (1) underwritten by an international syndicate, (2) offered at issuance
simultaneously to investors in a number of countries, and (3) issued outside the jurisdiction of any single
country.


Euro-medium Term Note (Euro-MTN) Image 3

Eurobond

A debt security issued in a market other than the home market of
the company issuing the security


eurobond

Bond that is marketed internationally.



Euroclear

One of two principal clearing systems in the eurobond market. It began operations in 1968, is
located in Brussels, and is managed by Morgan Guaranty Bank.


Eurocredits

Intermediate-term loans of eurocurrencies made by banking syndicates to corporate and
government borrowers.


Eurocurrency deposit

A short-term fixed rate time deposit denominated in a currency other than the local
currency (i.e. US$ deposited in a London bank).


Eurocurrency market

The money market for borrowing and lending currencies that are held in the form of
deposits in banks located outside the countries of the currencies issued as legal tender.


Eurodollar

This is an American dollar that has been deposited in a european bank or an U.S. bank branch
located in europe. It got there as a result of payments made to overseas companies for merchandise.


Eurodollar bonds

eurobonds denominated in U.S.dollars.


eurodollars

Dollars held on deposit in a bank outside the United States.


Eurodollars

Deposits denominated in U.S. dollars but held in banks located outside the United States, such as in Canada or France.


Euroequity issues

Securities sold in the euromarket. That is, securities initially sold to investors
simultaneously in several national markets by an international syndicate. euromarket.
Related: external market


European Currency Unit (ECU)

An index of foreign exchange consisting of about 10 european currencies,
originally devised in 1979.



European Monetary System (EMS)

An exchange arrangement formed in 1979 that involves the currencies
of european Union member countries.


European option

Option that may be exercised only at the expiration date. Related: american option.


European option

An option that can be exercised only on its expiration date.
Contrast with American option.


European-style option

An option contract that can only be exercised on the expiration date.


European Union (EU)

An economic association of european countries founded by the Treaty of Rome in
1957 as a common market for six nations. It was known as the european Community before 1993 and is
comprised of 15 european countries. Its goals are a single market for goods and services without any
economic barriers and a common currency with one monetary authority. The EU was known as the european
Community until January 1, 1994.


European Union (EU)

an economic alliance originally created
in 1957 as the european Economic Community by
France, Germany, Italy, Belgium, the Netherlands, and Luxembourg
and later joined by the United Kingdom, Ireland,
Denmark, Spain, Portugal, and Greece; prior to the Maastricht
Treaty of 1993 was called the european Community;
has eliminated virtually all barriers to the flow of capital,
labor, goods, and services among member nations


Euroyen bonds

eurobonds denominated in Japanese yen.


Extendable notes

note the maturity of which can be extended by mutual agreement of the issuer and
investors.


Financial intermediaries

Institutions that provide the market function of matching borrowers and lenders or
traders.


financial intermediary

Firm that raises money from many small investors and provides financing to businesses or other
organizations by investing in their securities.


Financial Intermediary

Any institution, such as a bank, that takes deposits from savers and loans them to borrowers.


Financial Intermediation

The process whereby financial intermediaries channel funds from lender/savers to borrower/spenders.


Flexible Term

Optional periods of time which the conditions of a contract will be carried out.


Flip-flop note

note that allows investors to switch between two different types of debt.


Floating-rate note (FRN)

note whose interest payment varies with short-term interest rates.


Intermarket sector

spread The spread between the interest rate offered in two sectors of the bond market for
issues of the same maturity.


Intermarket spread swaps

An exchange of one bond for another based on the manager's projection of a
realignment of spreads between sectors of the bond market.


Intermediary

An independent third party that may act as a mediator during negotiations.


Intermediate Good

A good used in producing another good.


Intermediate-term

Typically 1-10 years.


Intermediation

Investment through a financial institution. Related: disintermediation.


Inverse floating rate note

A variable rate security whose coupon rate increases as a benchmark interest rate declines.


Liquid yield option note (LYON)

Zero-coupon, callable, putable, convertible bond invented by Merrill


Liquid yield option note (LYON)

Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co.


Liquidity theory of the term structure

A biased expectations theory that asserts that the implied forward
rates will not be a pure estimate of the market's expectations of future interest rates because they embody a
liquidity premium.


Long-term

In accounting information, one year or greater.


Long-term assets

Value of property, equipment and other capital assets minus the depreciation. This is an
entry in the bookkeeping records of a company, usually on a "cost" basis and thus does not necessarily reflect
the market value of the assets.


Long-term debt

An obligation having a maturity of more than one year from the date it was issued. Also
called funded debt.


Long-term debt

A debt for which payments will be required for a period of more than
one year into the future.


Long Term Debt

Liability due in a year or more.


Long-term debt/capitalization

Indicator of financial leverage. Shows long-term debt as a proportion of the
capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and
common stockholder equity.


Long-term debt ratio

The ratio of long-term debt to total capitalization.


Long-term debt to equity ratio

A capitalization ratio comparing long-term debt to shareholders' equity.


Long-term financial plan

Financial plan covering two or more years of future operations.


Long-term liabilities

Amount owed for leases, bond repayment and other items due after 1 year.


LONG-TERM LIABILITIES

Bills that are payable in more than one year, such as a mortgage or bonds.


Long-term liabilities

Amounts owing after more than one year.


Longer-Term Fixed Assets

Assets having a useful life greater than one year but the duration of the 'long term' will vary with the context in which the term is applied.


Medium of Exchange

Any item that can be commonly exchanged for goods and services.


Medium-term note

A corporate debt instrument that is continuously offered to investors over a period of
time by an agent of the issuer. Investors can select from the following maturity bands: 9 months to 1 year,
more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.


Money market notes

Publicly traded issues that may be collateralized by mortgages and MBSs.


Municipal notes

Short-term notes issued by municipalities in anticipation of tax receipts, proceeds from a
bond issue, or other revenues.


Note

Debt instruments with initial maturities greater than one year and less than 10 years.


Note agreement

A contract for privately placed debt.


Note issuance facility (NIF)

An agreement by which a syndicate of banks indicates a willingness to accept
short-term notes from borrowers and resell these notes in the eurocurrency markets.


Notes payable

Amounts owed by the company that have been formalized by a legal document called a note.


NOTES RECEIVABLE

notes receivable are promissory notes that the company has accepted from its debtors. Most promissory notes pay interest. Those that are due within a year are shown under “Current Assets.” Those that mature in more than a year would be listed under “Long-term Assets.” If a note is being
collected in installments, the payments due within the next twelve months are shown as a current asset, and the remainder is shown as a long-term asset.


Notes receivable

Amounts owed to the company that have been formalized by a legal agreement called a note.


Notes to the financial statements

A detailed set of notes immediately following the financial statements in
an annual report that explain and expand on the information in the financial statements.


Other long term liabilities

Value of leases, future employee benefits, deferred taxes and other obligations
not requiring interest payments that must be paid over a period of more than 1 year.


predetermined overhead rate

an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate


Project notes (PNs)

Project notes are issued by municipalities to finance federally sponsored programs in
urban renewal and housing and are guaranteed by the U.S. Department of Housing and Urban Development.
Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a standalone
basis.
Projected benefit obligation (PBO) A measure of a pension plan's liability at the calculation date assuming
that the plan is ongoing and will not terminate in the foreseeable future. Related:accumulated benefit obligation.


Promissory note

Written promise to pay.


Promissory Note

Written promise committing the maker to pay the a specified sum of money either on demand or on some future date, with or without interest.


Repayment Terms

The length of time given a borrower by a lender to repay a debt and the frequency of principal payments which the borrower has to meet.


Short-term financial plan

A financial plan that covers the coming fiscal year.


Short-term investment services

Services that assist firms in making short-term investments.


Short-term solvency ratios

Ratios used to judge the adequacy of liquid assets for meeting short-term
obligations as they come due, including
1) the current ratio,
2) the acid-test ratio,
3) the inventory turnover ratio, and
4) the accounts receivable turnover ratio.


Short-term tax exempts

Short-term securities issued by states, municipalities, local housing agencies, and
urban renewal agencies.


TANs (tax anticipation notes)

Tax anticipation notes issued by states or municipalities to finance current
operations in anticipation of future tax receipts.


Term

See term to maturity.


Term

This is usually the duration of a loan.


term

The period of time during which a financial contract – such as a GIC or a loan – is in force.


Term

The time period during which a policy is in force, or the time it takes for a policy to reach maturity.


Term bonds

Often referred to as bullet-maturity bonds or simply bullet bonds, bonds whose principal is
payable at maturity. Related: serial bonds


Term Deposit

An interest-earning bank deposit that cannot be withdrawn without penalty until a specific time.


Term Fed Funds

Fed Funds sold for a period of time longer than overnight.


Term insurance

Provides a death benefit only, no build-up of cash value.


Term Life

A product that provides life coverage for a specified duration typically not beyond the age of 75.


Term life insurance

A contract that provides a death benefit but no cash build-up or investment component.
The premium remains constant only for a specified term of years, and the policy is usually renewable at the
end of each term.


Term Life Insurance

A plan of insurance which covers the insured for only a certain period of time and not necessarily for his or her entire life. The policy pays a death benefit only if the insured dies during the term.



 

 

 

 

 

 

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