foreign bond

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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 ?
However, increased holdings of foreign bonds, particularly US Treasuries, has made the earnings and capitalisation of the mega banks more sensitive to global monetary tightening.
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.
While foreign bonds were picked by three respondents, none found Japanese government debt (JGB) attractive because of depressed yields.
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.
fiscal crisis escalated, Japanese investors sold a record amount of foreign bonds on a net basis last week, offloading nearly $23 bln worth.
As the crisis in Washington unfolded, Japanese investors sold a record $23bn worth of foreign bonds on a net basis in the week ended 5 October.
The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Okuda) has today acquired a part of public offered yen-denominated foreign bonds (Samurai bonds)*1 issued in Japan by the Government of the United Mexican States under the Guarantee and Acquisition toward Tokyo market Enhancement (GATE)*2 facilities.
Tokyo: Tokyo's pick to head the Bank of Japan on Monday ruled out purchases of foreign bonds to stoke the economy, as the country faced criticism it was engineering a yen devaluation.

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