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Definition of 'Foreign Bond'
A bond that is issued in a domestic market by a foreign entity, in the domestic market's currency.
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Investopedia explains 'Foreign Bond'
Foreign bonds are regulated by the domestic market authorities and are usually given nicknames that refer to the domestic market in which they are being offered.
Since investors in foreign bonds are usually the residents of the domestic country, investors find them attractive because they can add foreign content to their portfolios without the added exchange rate exposure.
Types of foreign bonds include bulldog bonds, matilda bonds, and samurai bonds.
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