External credit markets trade interest rate contracts denominated in a currency but traded outside the borders of the country issuing that currency.

Question

Quizplus · Accepted Answer

This is true. External credit markets, also known as offshore credit markets, trade interest rate contracts denominated in a currency but traded outside the country issuing that currency. This allows investors to diversify their portfolios and access different interest rate environments. Examples of external credit markets include the Eurodollar market and the Samurai market.

External Credit Markets Trade Interest Rate Contracts Denominated in a Currency