Bulldog Bond

AAA

DEFINITION of 'Bulldog Bond'

A type of bond purchased by buyers interested in earning a revenue stream from the British pound or sterling. A bulldog bond is traded in the United Kingdom. If the revenue is used to reduce debt also in British pounds, the exchange rate risk is decreased. These bonds are issued by non-British institutions that want to sell the bond in the United Kingdom. U.S. investors can also purchase this bond, but by doing so they take on the risk of the change in value of the sterling.

INVESTOPEDIA EXPLAINS 'Bulldog Bond'

These sterling bonds are referred to as bulldog bonds as the bulldog is a national symbol of England. The sterling is considered the third largest reserve currency in the world after the U.S. dollar and the euro. This bond is similar to the Yankee bond in that a non-American company can sell these bonds in the United Sates in order to raise capital. The Yankee bond is denominated in U.S. dollars.

RELATED TERMS
  1. Dim Sum Bond

    A bond denominated in Chinese yuan and issued in Hong Kong. Dim ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company ...
  4. Foreign-Exchange Risk

    1. The risk of an investment's value changing due to changes ...
  5. Kangaroo Bond

    A type of foreign bond that is issued in the Australian market ...
  6. Maple Bond

    A bond denominated in Canadian dollars that is sold in Canada ...
Related Articles
  1. Bonds & Fixed Income

    How Bond Market Pricing Works

    Learn the basic rules that govern how bond prices are determined.
  2. Mutual Funds & ETFs

    The Bond Market: A Look Back

    Find out how fixed-income investments evolved in the past century and what it means today.
  3. 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.
  4. Retirement

    Bond Basics Tutorial

    Investing in bonds - What are they, and do they belong in your portfolio?
  5. Promising high yields that the Eurozone and U.S. can't match, West African sovereign debt has caught the attention of savvy investors.
    Bonds & Fixed Income

    Interested In West African Debt? Look Here First

    Promising high yields that the Eurozone and U.S. can't match, West African sovereign debt has caught the attention of savvy investors.
  6. Options & Futures

    Writing Covered Calls On ETFs

    The strategy of writing covered calls on ETFs can limit your losses and hedge risk, but they cap your upside potential.
  7. Bonds & Fixed Income

    What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields move in opposite directions.
  8. Taxes

    Why should I keep records on my tax-exempt bond transactions?

    Keep your purchase records on all investments, including tax-exempt bonds. Though the interest is tax-free, you may owe taxes if you sell your bond for a gain.
  9. Bonds & Fixed Income

    What causes a bond's price to rise?

    Learn about factors that influence the price of a bond, such as interest rate changes, credit rating, yield and overall market sentiments.
  10. Mutual Funds & ETFs

    How can I find good investments among lower rated bonds?

    Invest in high-yield bonds through mutual funds, exchange-traded funds or closed-end funds, leaving the job of finding a good deal to an expert.

You May Also Like

Hot Definitions
  1. Marketable Security

    Any equity or debt instrument that it readily salable and can be converted into cash, or exchanged with ease. Stocks, bonds, ...
  2. Risk-Free Rate Of Return

    The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would ...
  3. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  4. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  5. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  6. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
Trading Center