Hello,
Would a bond issued in Germany denominated in US dollars and sold in Germany be considered a Eurobond?
Also, would a bond issued in Germany denominated in US dollars and sold in France be considered a Eurobond?
I believe the former is incorrect and the latter is correct but not certain.
The first one not, the second one yes. Currency and country of listing need to have another denomination/jurisdiction.
Depends on who is issuing the bond.
the second one would be a Eurobond if: A German FIRM issues a bond in France denominated in USD.
Otherwise its just globally registered bond - one that is issues in a home country but trades in another country. This would be a German FIRM issuing a dollar denominated bond that trades/is registered in France.
Otherwise its just globally registered bond - one that is issues in a home country but trades in another country. This would be a German FIRM issuing a dollar denominated bond that trades/is registered in France.
Sorry to clarify this: A German firm issuing a dollar denominated bond in GERMANY originally but it also trades/is registered in France. This would be more of a gloabally registered bond.
Ok. That means both of my examples do not satisfy requires for Eurobond. My second example is a globally registered bond, because it’s a German firm. Thanks.
I read the section in the book over again. I am not sure whether this is considered an Eurobond: A US firm issues US denominated bond in Germany and sells it in Germany.
In Schweser, it states, “Eurobonds are issued outside the jurisdiction of any one country and denominated in a currency different from the currency of the countries in which they are sold.”
That means my example satisfies the first part, because it’s a US firm in Germany? It satisfies the second part, because it is sold in Germany but denominated in USD?
I read the section in the book over again. I am not sure whether this is considered an Eurobond: A US firm issues US denominated bond in Germany and sells it in Germany.
In Schweser, it states, “Eurobonds are issued outside the jurisdiction of any one country and denominated in a currency different from the currency of the countries in which they are sold.”
That means my example satisfies the first part, because it’s a US firm in Germany? It satisfies the second part, because it is sold in Germany but denominated in USD?
I remember the Eurobond as having 3 different players in it e.g. Yen (Japan), issued in US, sold in China.
What other types of multinational bonds are there? I.e what is a global bond, and is there any others we need to remember.
Thanks.
Global bond is an Eurobond that trade in the national bond market of a country other than the country that issues the currency the bond is denominated in. There’s also Foreign bonds.
foreign bonds are when a foreign country issues bonds using the target countrys currency
eurobonds are issued by a foreign country where they use their own currency instead of hte target country
global bonds are issued in the eurobond market and at least one domestic country simultaneously