International fixed-income
Most Financial-market activity takes place wholly within the boundaries of a single country and is denominated in that country’s currency. A large and growing share, however, now crosses national boundaries, as individuals move capital into currencies that seem to offer greater returns, and as borrowers search the globe for money at the lowest price. This international market for money can be divided into two segments. In some cases investors and borrowers will arrange transactions in a country other than their own, using that country’s currency. In other cases, a transaction will be arranged in a currency other than that of the country where it occurs. Until recently, the former were known simply as foreign transactions, and the latter were referred to as Euromarket transactions. The distinction between the two has blurred, however, as this article will explain. A brief history of the Euro markets The idea of using the money of one country to transact business in another
