Foreign Bond

Bond issued by a government or company in a foreign country and denominated in that (foreign) country’s currency. Usually, the issuer does so to take advantage of more favourable market conditions in the country of issue. In the international capital market, certain coinages linked to the country of issue have developed to describe some foreign bonds. These include yankee bonds (foreign bonds issued in the U.S.), Samurai bonds (Japan) and Bulldog bonds (United Kingdom).