A Eurobond is a bond that is issued by an international borrower and sold to investors in countries with currencies other than the currency in which the bond is denominated. An example of a Eurobond is a dollar-denominated bond issued by a U.S. company and sold to Japanese investors. A Eurobond is typically issued in a single currency (frequently dollars) in many countries. By selling Eurobonds, many multinational companies finance their global operations especially in the countries in which they are do business. Eurobonds are also a source of intermediate and long-term financing of sovereign governments and supranationals (e.g., IMF, WB, etc).

In contrast to a Eurobond, a foreign bond is a bond issued in a host country’s financial market, in the host country’s currency, by a foreign borrower. This bond is subject to the regulations imposed on all securities traded in the national market and sometimes to special regulations and disclosure requirements governing foreign borrowers. Many of these issues have colorful nicknames such as:

• Yankee bonds: dollar-denominated bonds which are issued by non-American borrowers in the U.S. market.
• Samurai bonds: yen-denominated bonds which are issued by non-Japanese borrowers in the Japanese market.
• Bulldog bonds: pound sterling-denominated bonds which are issued by non-British borrowers in the British market.
• Heidi bonds: franc-denominated bonds which are issued by non-Swiss borrowers in the Swiss market.
• Rembrandt bonds: guilder (now euro)-denominated bonds which are issued by non-Dutch borrowers in the Dutch market.
• Matador bonds: peseta (now euro)-denominated bonds which are issued by non-Spanish borrowers in the Spanish market.

For example, in the United States, Yankee bonds are registered with the Securities and Exchange Commission (SEC), and like other U.S. bonds, their interest is paid semiannually. Sovereign government issues or issues guaranteed by sovereign governments tend to denominate the Yankee bond market.