Bulldog Market

AAA

DEFINITION of 'Bulldog Market'

A nickname for the foreign bond market of the United Kingdom. The Bulldog market is the internal market in which the securities of issuers not living in the United Kingdom can be bought and sold. These securities are quoted in British pounds sterling.

INVESTOPEDIA EXPLAINS 'Bulldog Market'

The “bulldog” in Bulldog market pays homage to the English bulldog, which is considered a national mascot of England and the United Kingdom. The foreign markets of several other countries have also received nicknames, including the Netherlands (“Rembrandt market”), United States (“Yankee market”), Spain (“Matador market”), and Japan (“Samurai market”).

The United Kingdom, especially the city of London, is a popular location for companies looking to find financing. London, in fact, has long been considered the financial capital of the world. The British pound sterling is one of the staple currencies of the world financial market, and investing in bonds denominated in pounds is considered a more sound investment because of its relative low risk. The Bulldog market is different than the United Kingdom’s external bond market, where bonds not issued in the United Kingdom can be traded.

Another reason for the popularity of the United Kingdom’s foreign bond market is the historical reach of the British Empire, which at one point included large markets such as Australia, Hong Kong, and India. By issuing bonds in British pounds, companies were more likely to face reduced risk since the pound was a dominant currency in so many different locations and markets.

Companies raising funds in the Bulldog market must follow British financial regulations, with the historical stability created by Britain’s rule of law acting as another reason why its foreign market is popular.

The Bulldog market should not be confused with "bull market", which describes a market on the rise.

 

RELATED TERMS
  1. GBP/USD (British Pound/U.S. Dollar)

    The abbreviation for the British pound and U.S. dollar (GBP/USD) ...
  2. Samurai Market

    A slang term for the stock market in Japan. Samurai market is ...
  3. Yankee Market

    A slang term for the stock market in the United States. Yankee ...
  4. Eurodollar

    U.S.-dollar denominated deposits at foreign banks or foreign ...
  5. Bulldog Bond

    A type of bond purchased by buyers interested in earning a revenue ...
  6. Eurobond

    A bond issued in a currency other than the currency of the country ...
RELATED FAQS
  1. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
  2. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy – and the primary reason why private companies decide to ... Read Full Answer >>
  3. How are labor and capital affected by the balance of trade?

    The balance of trade, or BOT, the net of exports and imports for a given country, also known as the current account, is a ... Read Full Answer >>
  4. Where did the term "capitalism" come from?

    The term capitalism originates from the Latin word capitalis," which literally means "head of cattle." Capitalis comes from ... Read Full Answer >>
  5. What are some examples of Cash Flow from Financing (CFF)?

    The cash flow statement is a financial statement showing the net change in cash for a company in a given period. Entries ... Read Full Answer >>
  6. Can retail investors buy commercial paper?

    Retail investors can buy commercial paper. However, buying commercial paper is subject to a significant number of restrictions ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Introduction To Trading Eurodollar Futures

    Introduction to trading eurodollar futures, covering eurodollar time deposits, the history of eurodollars, hedging and speculating with eurodollar futures.
  2. Economics

    Countries That Thrive On A Weak European Union

    The current eurozone crisis is having a heavy impact on the global economy and certain nations may leave the EU as a result.
  3. Bonds & Fixed Income

    Understanding Interest Rates, Inflation And The Bond Market

    Get to know the relationships that determine a bond's price and its payout.
  4. Forex Education

    Behind The Euro: History And Future

    The euro was designed to create economic parity among eurozone nations. Discover where it's going and where it's been.
  5. Credit & Loans

    5 Eurozone Acronyms Explained

    Confused by all of the new acronyms used by the media to describe the European debt crisis? We can help.
  6. Personal Finance

    Why Britain Withdrew From The ERM

    Britain may have dodged a bullet, but it certainly was not an innocent bystander and still managed to become collateral damage.
  7. Forex Education

    The British Pound: What Every Forex Trader Needs To Know

    As a strong alternative to the dollar it is likely that the pound will remain a preeminent global currency for some time to come.
  8. Forex Education

    The Euro: What Every Forex Trader Needs To Know

    Find out the reports and events that determine the euro's worth, and how we can predict movements in its valuation.
  9. Forex Education

    5 Reports That Affect The British Pound

    The pound is one of the world's most popular traded currencies, and is heavily impacted by these factors.
  10. Forex Education

    The Ins And Outs Of Corporate Eurobonds

    Corporate eurobonds simplify expansion for MNCs, though there are a few more hoops to jump through.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center