Foreign Bonds

A "foreign currency" bond is a bond that is issued by an issuer in a currency other than its national currency. Issuers make bond issues in foreign currencies to make them more attractive to buyers and to take advantage of international interest rate differentials.

Foreign currency bonds have a vocabulary of their own. Bonds issued in foreign currencies are given the names listed beside the currencies below:

• "Yankee Bonds" for US dollars
• "Samurai Bonds" for Japanese Yen
• "Bulldog Bonds" for British pounds
• "Kiwi Bonds" for New Zealand dollars

Veena Vishwanathan

Globsyn Business School