Foreign bond
Foreign bond is a bond sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a U.S. firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Foreign bond. A bond sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a U.S. firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Foreign bonds. Bonds issued by foreign governments or by foreign corporations.
- Foreign bond. A type of international bond issued in the domestic capital market of the country in whose currency the bond is denominated, and underwritten by investment banks from the same country; however, the borrower is headquartered in a different country.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
