Sushi Bond

DEFINITION of 'Sushi Bond'

A bond issued by a Japanese issuer in a market outside Japan and denominated in a currency other than the yen. Sushi bonds are especially popular with Japanese institutional investors, since these bonds do not count toward regulatory limits on foreign securities holdings. A sushi bond is essentially a colloquial term for a eurobond from a Japanese issuer.

BREAKING DOWN 'Sushi Bond'

A Japanese company may seek to issue sushi bonds for a number of reasons: to capitalize on new investment opportunities, access cheaper funding alternatives or refinance foreign currency liabilities. Japanese institutions that wish to add an element of currency diversification to their bond portfolios are logical buyers for sushi bonds.

RELATED TERMS
  1. Sushi Roll

    A candlestick pattern consisting of 10 bars where the first five ...
  2. Global Bond

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

    A debt investment in which an investor loans money to an entity ...
  4. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
  5. Japanese Government Bond - JGB

    A bond issued by the government of Japan. The government pays ...
  6. Secured Bond

    A type of bond that is secured by the issuer's pledge of a specific ...
Related Articles
  1. Managing Wealth

    How Exchange Risk Affects Foreign Bonds

    Investors include foreign bonds in their portfolios to take advantage of higher interest rates or yields, and to diversify their holdings. However, the higher return expected from investing in ...
  2. Markets

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  3. Trading

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
  4. Markets

    Corporate Bond Basics: Learn to Invest

    Understand the basics of corporate bonds to increase your chances of positive returns.
  5. Personal Finance

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  6. Managing Wealth

    The Basics Of Bonds

    Bonds play an important part in your portfolio as you age; learning about them makes good financial sense.
  7. Financial Advisor

    Advising FAs: Explaining Bonds to a Client

    Most of us have borrowed money at some point in our lives, and just as people need money, so do companies and governments. Companies need funds to expand into new markets, while governments need ...
  8. Markets

    5 Fixed Income Plays After the Fed Rate Increase

    Learn about various ways that you can adjust a fixed income investment portfolio to mitigate the potential negative effect of rising interest rates.
  9. Trading

    Top 6 Uses For Bonds

    We break down the stodgy stereotype to see what these investments can do for you.
  10. ETFs & Mutual Funds

    5 Best High-Yielding Japan Bond ETFs (BNDX, ISHG)

    Discover five different investments that provide exposure to Japanese bonds and that can potentially give your portfolio a boost in yield.
RELATED FAQS
  1. How are Sushi Roll patterns interpreted by analysts and traders?

    Learn what the sushi roll candlestick pattern is and how it is typically interpreted by traders and market analysts. Read Answer >>
  2. Which factors most influence fixed income securities?

    Learn about the main factors that impact the price of fixed income securities, and understand the various types of risk associated ... Read Answer >>
  3. 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 ... Read Answer >>
  4. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
  5. Why is my bond worth less than face value?

    Find out how bonds can be issued or traded for less than their listed face values, and learn what causes bond prices to fluctuate ... Read Answer >>
  6. Where can I find information about corporate bond issues?

    Learn information about corporate bond investments, including where investors can access information about new corporate ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center