Matador Bond

AAA

DEFINITION of 'Matador Bond'

A term used to identify a foreign bond issued in Spain by a company that is not domiciled in Spain. Matador bonds were bonds denominated in pesetas, and were usually corporate bonds.
The market for matador bonds grew rapidly between 1987 and 1999, and attracted many large local and foreign investors. The name matador originated from the bullfighters in Spain.

INVESTOPEDIA EXPLAINS 'Matador Bond'

Spain followed a systematic approach when accepting new foreign issuers. Spain initially only allowed AAA-rated supranationals to issue matador bonds, then a few years later allowed other sub-AAA multinationals access to Spain's debt markets, and eventually it allowed non-investment grade sovereigns to issue bonds.

RELATED TERMS
  1. Bond

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

    A yen-denominated bond issued in Tokyo by a non-Japanese company ...
  3. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
  4. Global Bond

    This type of bond can be traded in a domestic or European market. ...
  5. Yankee Bond

    A bond denominated in U.S. dollars that is publicly issued in ...
  6. Matilda Bond

    A bond denominated in the Australian dollar and issued on the ...
RELATED FAQS
  1. What is an indenture for a fixed income security?

    An indenture for a fixed-income security, also known as a bond indenture or trust indenture, is a contract that sets forth ... Read Full Answer >>
  2. What does a positive capital account balance mean?

    A positive capital account balance indicates that more money is flowing into, rather than out of, a country. A country's ... Read Full Answer >>
  3. What does a negative balance in the capital account mean?

    A negative capital account balance indicates a predominant money flow outbound from a country to other countries. The implication ... Read Full Answer >>
  4. Why is a premium usually paid on a callable bond?

    A premium over par value of a callable bond is typically offered to investors as extra compensation for the uncertainty inherent ... Read Full Answer >>
  5. How does a capital account illustrate the strength of investment markets for a country?

    A nation's capital account can be a major indicator of how much interest the nation generates among foreign investors. A ... Read Full Answer >>
  6. What kinds of acts pertaining to interests in collective investment schemes are excluded ...

    The two main kinds of acts excluded from regulation as "financial instruments business," which pertain to interests in collective ... Read Full Answer >>
Related Articles
  1. Investing

    The Advantages Of Bonds

    Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment.
  2. Bonds & Fixed Income

    Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  3. Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

    An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!
  4. Retirement

    Bond Basics Tutorial

    Investing in bonds - What are they, and do they belong in your portfolio?
  5. Bonds & Fixed Income

    Advanced Bond Concepts

    Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
  6. Economics

    How Is The GDP Of India Calculated?

    India is a front-runner among developing economies. Investopedia explains how India calculates its GDP, an indicator of economic health and performance.
  7. Mutual Funds & ETFs

    Top Mortgage-Backed Securities ETFs

    Investing in mortgage-backed securities has many advantages, but studying their history may make you wary.
  8. Investing

    Top Alternatives to Penny Stocks

    Have the stomach for high risk? Consider these alternatives to penny stocks.
  9. Stock Analysis

    Today's Top ETFs: Worth a Bet or Should You Pass?

    ETFs can be profitable and dangerous. Here's a list of today's most popular funds and what you should watch about them.
  10. Investing Basics

    Explaining Fixed Income

    A person living off a fixed income is usually a retiree receiving a fixed, steady monthly inflow of cash.

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  4. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  5. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
Trading Center