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The Genesis of the Roll-over Credit

  • Brian Scott Quinn

Abstract

An examination of the data on issues volumes for the eurobond and eurocurrency markets reveals an extremely rapid growth of the latter particularly at the time the former was declining (see table 1). The sector of the eurocurrency market that has shown most growth in the last few years has been medium-term lending, i.e. lending at up to say twelve years. Such loans are competitive with bond issues and over the last few years have been attractive for many borrowers who traditionally would have required bond finance. Most studies of the eurocurrency market have considered it only as a short-term market and have focused attention on interbank aspects rather than on the final loan to a non-bank borrower. From the point of view of this study however interest in the market centres mainly round its role as a source of medium-term funds and its interrelationship with the eurobond and foreign bond markets.

Keywords

Interest Rate Central Bank United States Dollar European Bank Demand Deposit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Notes

  1. 5.
    O. L. Altman, ‘Eurodollars’, Finance and Development (Mar. 1967).Google Scholar
  2. 10.
    J. E. Baird at the Financial Times Conference on the Euromarkets (1972).Google Scholar

Copyright information

© Brian Scott Quinn 1975

Authors and Affiliations

  • Brian Scott Quinn
    • 1
  1. 1.Department of EconomicsUniversity of ReadingUK

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