Foreign Bond


DEFINITION of 'Foreign Bond'

A bond that is issued in a domestic market by a foreign entity, in the domestic market's currency. A foreign bond is most often issued by a foreign firm to raise capital in a domestic market that would be most interested in purchasing the firm's debt. For foreign firms doing a large amount of business in the domestic market, issuing foreign bonds is a common practice.
Types of foreign bonds include bulldog bonds, matilda bonds and samurai bonds.

BREAKING DOWN '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.

  1. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company ...
  2. International Bond

    Debt investments that are issued in a country by a non-domestic ...
  3. Global Bond

    This type of bond can be traded in a domestic or European market. ...
  4. Eurobond

    A bond issued in a currency other than the currency of the country ...
  5. Matador Bond

    A term used to identify a foreign bond issued in Spain by a company ...
  6. Matilda Bond

    A bond denominated in the Australian dollar and issued on the ...
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