A bond that is issued by a foreign-domiciled borrower (such as a bank or financial institutions) in the currency of the country in which it is sold. For example, a Japanese firm may find it attractive to raise funds offshore by issuing bonds in the United States (bonds denominated in US dollar- known as yankee bonds). Other examples of foreign bonds include samurai bonds (bonds issued in Japan and denominated in yen) and bulldog bonds (bonds issued in the UK in sterling). Foreign bonds may not necessarily be Eurocurrency bonds- bonds whose funds used by the issuer to pay interest and principal are held on deposit outside the country where the bond has been issued and marketed).
August 27, 2024
