Cross-Border Bonds

Cross-border bonds

Bonds that firms issue in the international market.

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Cross-Border Bonds

Bonds issued in a country or currency other than that of the investor or broker. They include eurobonds, which are issued in a foreign currency, foreign bonds, which are issued by a foreign government or corporation in the domestic market, and global bonds, which are issued in both domestic and international markets. Unlike domestic bonds, cross-border bonds are usually subject to currency risk. Caution is required when investing in cross-border bonds because they may be subject to different regulatory and taxation requirements than the ones with which the investor or broker is familiar. They are also called international bonds.