Types of Bonds

Foreign bonds are denominated in the currency of the country in which a non-resident or foreign issuer actually issues the bond. These bonds trade similarly to other bonds in the domestic market in which they are issued. For example, Bulldog bonds are sterling denominated bonds issued in the UK by a non-UK issuer. Yankee bonds are dollar denominated bonds issued in the US by a non-US issuer. Rembrandt bonds are issued in the Netherlands; Matador bonds in Spain, etc.

The most important country for foreign bond issues has been the US dollar market.

Global bonds are bonds offered in multiple markets, so they can be both in the foreign market and Eurobond market—they can be offered in the country of the currency in which the bond is denominated as well as countries with currencies different to that of the denomination.