Foreign Bonds
"Foreign Bonds" are issued inside of a foreign country, and are named after the currency they are denominated in. For example, Euroyen and Eurodollar bonds are denominated in Japanese yen and American dollars respectively. Yankee bonds, for example are bond issued in the US, and in USD, but by a foreign company / country. Another example: Samurai bonds are yen-denominated debt issued by foreign entities to Japanese investors.
Reason for existence? Its one tool for foreigners to tap into the capital markets of a country without having to move operations there.
Trends; Foreign Bonds have not been as popular as Eurobonds with foreign borrowers. But, in recent years, however, there has been a shift as people have issued in different currencies.
Comparison with EuroBonds:
"Foreign Bonds" are different than Eurobonds in that Foreign Bonds are issued in just one country, and are denominated just in that countries Currency. A EuroBond is a bond denominated in one currency, and then simultaneously issued in multiple European countries. These tools have become a very important way for companies to raise money.
Foreign Bonds - Drawbacks
tougher regulations than Eurobonds, and as a result, the Foreign Bonds are not as popular
Where?
In recent years, about 50% of all Foreign Bonds are issued in Switzerland.
News example:
http://www.ft.com/cms/s/0/53d5abf8-82bc-11dd-a019-000077b07658.html
Links
International Money issues
foreign currency trading
Eurobonds
Eurocurrency
Foreign bonds
LIBOR
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