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Unformatted text preview: Companies also are having a hard time rolling over these papers at maturity because of lack of demand. 3. What are mortgage-backed securities? Answer: A mortgage-backed security is either an ownership claim in a pool of mortgages or an obligation that is secured by such a pool. 4. What is the difference between Eurodollars and Eurobonds? Answer: Eurodollars are dollar-denominated deposits at foreign banks or foreign branches of American banks. These deposits do not have to be in European banks. Eurobonds are bonds denominated in a currency other than that of the country in which it is issued. For instance a Eurodollar bond is a dollar-denominated bond sold outside US....
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- Spring '08