Definition of foreign bond

A bond issued by a foreign borrower in the currency of the country in which it is sold. Examples include Yankee bonds (US dollar denominated bond issued by a foreign borrower in the US), Samurai bonds (issued in Japan and denominated in yen) and Bulldog bonds (issued in the UK in sterling). These foreign bonds may or may not be Eurocurrency bonds (the funds used by the borrower to pay the interest and principal are held on deposit outside the country in which the bond has been sold).

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