Definition of Euro-note

Euro-note

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

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.

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.

Convertible eurobond

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

Demand master notes

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

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 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.

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.

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.

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.

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.

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.

TANs (tax anticipation notes)

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

Treasury notes

Debt obligations of the U.S. Treasury that have maturities of more than 2 years but less than 10 years.

U.S. Treasury note

U.S. government debt with a maturity of one to 10 years.

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