foreign bond

Foreign bond

A bond of a non-domestic company issued on the domestic capital market.

Foreign Bond

A bond traded in a given country that was issued by a foreign government or company. The foreign bond market trades in the domestic currency and is regulated by domestic regulators.

foreign bond

A debt security issued by a borrower from outside the country in whose currency the bond is denominated and in which the bond is sold. A bond denominated in U.S. dollars that is issued in the United States by the government of Canada is a foreign bond. A foreign bond allows an investor a measure of international diversification without subjection to the risk of changes in relative currency values. See also Eurobond.
Is it risky to invest in foreign securities?

Investing in foreign securities can actually reduce your overall portfolio risk and at the same time modestly increase the potential for returns. The U.S. stock market still remains the largest in the world; however, foreign markets now account for approximately 50% of the global stock market capitalization. Consequently, it is becoming more important to diversify portfolios globally, taking advantage of growth rates in different regions and countries. Proper international diversification can help balance out your returns by reducing or avoiding losses when the U.S. markets are underperforming.

Thomas M. Tarnowski, Senior Business Analyst, Global Investment Banking Division, Citigroup, Inc.—Salomon Smith Barney, New York, NY, and London, UK
References in periodicals archive ?
Overseas investors had been anticipating foreign bond buying (by Japan), but that key pillar for boosting the dollar against the yen is now gone," said Minori Uchida, head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ.
The wealth effect comes about because the dollar depreciation raises the dollar value of foreign bond holdings (F/e [arrow up]).
This "suggests that a reversal may be likely, as this scale of selling of foreign bonds is unprecedented and may well lead to renewed foreign bond purchases by Japanese investors if and when the U.
Attjariwafa Bank and BMCE Bank, the two biggest Moroccan banks, both plan to raise $500 million through foreign bond issues.
Do people have more foreign bond (investment) than they think?
If a foreign bond pays 15%, but its currency is devalued by 20%, American investors wind up losing money.
The husband owned a foreign bond in his name alone during 2004, valued at about $7,500.
The increase was partly due to the rise in prices of Japan's foreign bond holdings, a ministry official said, without specifying which bonds they were.
Tehran completes its first foreign bond issue since the 1979 Islamic Revolution, attracting interest from institutional investors in the Gulf region and Europe.
THE GOVERNMENT is planning another e1/41 billion foreign bond issue in the new year, Finance Minister Charilaos Stavrakis revealed yesterday.
The yen strengthened after Finance Minister Taro Aso denied the country was considering foreign bond buying, seen as a measure for weakening the yen.
On Monday, the yen weakened after Prime Minister Shinzo Abe mentioned foreign bond buying as an option for the Bank of Japan to further ease monetary policy.

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