Eurodollar Bond
Definition of 'Eurodollar Bond'A U.S.-dollar denominated bond issued by an overseas company and held in a foreign institution outside both the U.S. and the issuer's home nation. Eurodollar bonds are an important source of capital for multinational companies and foreign governments.A eurodollar bond is a type of Eurobond. |
|
Investopedia explains 'Eurodollar Bond'Don't let the name confuse you! Although the eurodollar originated in London, the name today refers only to the history, not the currency.For example, if a Chinese bank held dollar-denominated bonds issued by a Japanese company, this would be considered a eurodollar bond. Eurodollar bonds are advantageous because they are subject to fewer regulatory restrictions. They are not registered with the United States' Securities and Exchange Commission and can be sold at lower interest rates than in the U.S. |
Related Definitions
Articles Of Interest
-
The Advantages Of Bonds
Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment. -
Bond Basics Tutorial
Investing in bonds - What are they, and do they belong in your portfolio? -
The Money Market
If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market. -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
6 Popular ETF Types For Your Portfolio
Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods. -
Top 5 Budgeting Questions Answered
You don't need a degree to understand your money, begin saving and pay down debt. -
Asset Allocation: The First Step Toward Profit
Understanding the different asset classes is an essential part of portfolio diversification. -
Junk Bond
Find out more about these bonds that have a high risk of default. -
Guaranteed Retirement Income In Any Market
By laddering annuities, you can be sure you'll have income no matter what the market does. -
Debentures
Learn more about this type of debt instrument.
Free Annual Reports