foreign bond

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Foreign bond

A bond of a non-domestic company issued on the domestic capital market.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Summary: The Lebanese commercial banks investments in foreign bonds and equities in 2018 dropped by 10.2 percent in 2018 to $3.56 billion compared to 2017
Japan's Ministry of Finance said Japanese investors bought in JPAY=3 trillion (US$28.25 billion; NT$884.81 billion) mid- and long-term foreign bonds in June, among which over half were U.S.
The dollar-denominated diaspora bonds are offering higher yields compared to foreign bonds and the latest issuance is 100% guaranteed by the government.
This is calculated as purchases of foreign bonds by eurozone residents minus foreigners' purchases of eurozone bonds.
Bond buyers are moving into foreign bonds and out of Treasuries to benefit from the pick-up from FX hedging on the wide gap in yields that turns even low yielding foreign bonds into a positive windfall over Treasuries.
Pakistan's foreign exchange reserves have enhanced by $2 billion due to the inflows received from foreign bonds and Sukuk in the outgoing week.
Forex Association president Malik Bostan has said the road show on launching foreign bonds has remained successful which is likely to generate 2 billion dollars.
Banks are making the move as regulatory concerns restrict ownership of foreign bonds. A Bloomberg survey showed that alternative assets were the favoured choice of investment for five lenders.
He said Iran could currently lure in foreign investment worth $150 billion, adding that the central bank's strategy aims to attract foreign capital and short-, medium- and long-term foreign bonds.
That's because many bond funds have been buying foreign bonds in recent years, including some that say they could serve as the only bond fund in your portfolio.
stocks have outperformed foreign stocks in recent years, some types of foreign bonds have held up well.
The new portfolio will see low-yielding domestic bonds account for 35 percent of the fund, with another 15 percent in foreign bonds, while 25 percent each would be placed in domestic and foreign shares.

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