Investments, tenth edition

  International Bonds 

 Many firms borrow abroad and many investors buy bonds from foreign issuers. In addition 

to national capital markets, there is a thriving international capital market, largely centered 

in London. 

 A   Eurobond  is a bond denominated in a currency other than that of the country in 

which it is issued. For example, a dollar-denominated bond sold in Britain would be called 

a Eurodollar bond. Similarly, investors might speak of Euroyen bonds, yen-denominated 

bonds sold outside Japan. Because the European currency is called the euro, the term 

Eurobond may be confusing. It is best to think of them simply as international bonds. 

 In contrast to bonds that are issued in foreign currencies, many firms issue bonds in for-

eign countries but in the currency of the investor. For example, a Yankee bond is a dollar-

denominated bond sold in the United States by a non-U.S. issuer. Similarly, Samurai bonds 

are yen-denominated bonds sold in Japan by non-Japanese issuers.