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Foreign bonds

Page history last edited by PBwiki 1 yr ago

Foreign Bonds

 

Are different than Eurobonds in that Foreign Bonds are issued in just one country, and are denominated just in that countries Currency

 

Yankee bonds, for example are bond issued in the US, and in USD, but by a foreign company / country.

 

In recent years, however, there has been a shift as people have issued in different currencies.

 

Reason for existence? Its one tool for foreigners to tap into the capital markets of a country without having to move operations there.

 

Example:  Samurai bonds are yen-denominated debt issued by foreign entities to Japanese investors.

 

 

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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