DEFINITION of 'Dragon Bond'

A fixed income security issued by a firm in an Asian nation, other than Japan, which is denominated in a foreign currency, usually U.S. dollars. The purpose of a dragon bond is to attract funds from a larger market of foreign investors. A secondary reason for issuing dragon bonds is so the bond is denominated in a more stable currency.

BREAKING DOWN 'Dragon Bond'

Bonds denominated in foreign currencies are aimed at specific markets where investors are usually willing to lend money on more favorable terms than may be available to them domestically. Because of their international nature, dragon bonds can be complicated instruments when considering international taxation and regulatory compliance issues.

RELATED TERMS
  1. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
  2. Dollar Bond

    1. A U.S. denominated bond that trades outside of the United ...
  3. Issue

    1. The process of offering securities as an attempt to raise ...
  4. Bond Resolution

    1. A document used with government bonds, especially general ...
  5. Discount Bond

    A bond that is issued for less than its par (or face) value, ...
  6. Yankee Bond

    A bond denominated in U.S. dollars that is publicly issued in ...
Related Articles
  1. Investing

    Spice Up Your Portfolio With International Bonds

    Going global can add flavor and diversity to an otherwise bland basket of bonds.
  2. Investing

    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.
  3. Investing

    Basics Of Federal Bond Issues

    Treasuries are considered the safest investments, but they should still be analyzed when issued.
  4. Investing

    Bond Funds Boost Income, Reduce Risk

    These funds can provide stable returns for those who depend on their investment income.
  5. Investing

    A Focus on Chinese Tourists is Shaking Things Up (LVS, MGM)

    The Chinese consumer will play a big role, and the mainstays might lose this battle.
  6. Investing

    U.S. Corporate Bonds: The Last Safe Place to Make Money

    There aren't many other sources right now for relatively safe, steady income.
  7. Investing

    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.
  8. Investing

    The Top 5 International Bond ETFs for 2016 (BNDX, VWOB)

    Learn more about five of the top international bond ETFs designed to provide exposure to foreign government and corporate debt securities.
  9. Investing

    The Basics Of Investing In Foreign Government Bonds

    Individuals contemplating the purchase of government bonds need to understand the risks of bond investing.
RELATED FAQS
  1. What are the key factors that will cause a bond to trade as a premium bond?

    Learn about the primary factor that can cause bonds to trade at a premium, including how national interest rates affect bond ... Read Answer >>
  2. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Learn how you can invest in the corporate bond market without investing a large amount of capital through bond funds and ... Read Answer >>
  3. 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 >>
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  3. Absolute Advantage

    The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost ...
  4. Nonce

    Nonce is a number added to a hashed block, that, when rehashed, meets the difficulty level restrictions.
  5. Coupon

    The annual interest rate paid on a bond, expressed as a percentage of the face value. It is also referred to as the "coupon ...
  6. Socially Responsible Investment - SRI

    Socially responsible investing looks for investments that are considered socially conscious because of the nature of the ...
Trading Center