Bulldog Market

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.

BREAKING DOWN '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. Association Of British Insurers ...

    A trade association comprised of insurance companies located ...
  2. GBP

    The abbreviation for the British pound sterling, the official ...
  3. The City

    The main financial district of London, and one of the world's ...
  4. International Bond

    Debt investments that are issued in a country by a non-domestic ...
  5. Confederation Of British Industry ...

    The premier lobbying organization for U.K. businesses on national ...
  6. Foreign Currency Convertible Bond ...

    A type of convertible bond issued in a currency different than ...
Related Articles
  1. Forex Education

    Forex Currencies: The GBP/USD

    By Brian PerryAlthough it is small in terms of land mass, the economy of the United Kingdom (U.K.) is prosperous. The British (U.K.) pound sterling (or pound) plays an important role in the international ...
  2. Mutual Funds & ETFs

    3 Reasons Global Bond ETFs Should Be in Your Portfolio (GHYG, GTIP)

    Learn about the global bond market and discover three reasons to include this asset class in your portfolio, along with two popular ETFs in the category.
  3. Stock Analysis

    Spice Up A Bond Portfolio By Going Global

    In order to get extra income, investors may want to open their portfolios up to international bonds.
  4. Home & Auto

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  5. Forex Education

    4 Reasons Currency Hedging is Important

    Learn how currency hedging can help reduce exchange rate risk for a portfolio of foreign stocks. Consider the cost of hedging and its potential benefits.
  6. Mutual Funds & ETFs

    The Top 5 International Bond Funds for 2016

    Understand the opportunities available within the international bond market, and learn about the top-rated global bond funds for 2016.
  7. Bonds & Fixed Income

    The Top 5 Long-Term Bond Funds for 2016

    Understand how long-term bond mutual funds can benefit an investor's portfolio, and learn the best long-term bond mutual funds for 2016.
  8. Stock Analysis

    National Grid: A Low Profile International Utility

    National Grid is a large but low profile international utility that touches the lives of millions of American and British consumers.
  9. Mutual Funds & ETFs

    What's a Unit Trust?

    The term, “unit trust,” in the United Kingdom is synonymous with “mutual fund,” the term used in the United States.
  10. Investing

    7 Questions to Consider Before Investing in Bonds

    There is a significant number of questions every investor, private or institutional, should consider before investing in bonds.
RELATED FAQS
  1. What is the cost of living difference between the U.S and the U.K?

    Learn how consumers pay, on average, nearly 30 percent more for private goods and services in the United Kingdom than in ... Read Answer >>
  2. Why doesn't England use the euro?

    Understand why the United Kingdom has opted to not join the eurozone in adopting the euro over the pound sterling as its ... Read Answer >>
  3. What is the difference between a gilt edged bond and a regular bond?

    A gilt edged bond is a high-grade bond issue. The term "gilt" is of British origin and originally referred to debt securities ... Read Answer >>
  4. Which factors most influence fixed income securities?

    Learn about the main factors that impact the price of fixed income securities, and understand the various types of risk associated ... Read Answer >>
  5. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
  6. How does a bull market in stocks affect the bond market?

    Take a deeper look at the relationship between the bond market and equities, and see what might happen to bonds during the ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center