Eurobond

This describes any international corporate or government bond that is denominated in a currency held outside its country of origin.

This describes any international corporate or government bond that is denominated in a 'eurocurrency'. Confusingly, given the name, this in turn is any currency (not just the euro) held outside its country of origin.

So, while most dollars are held in the US, 'eurodollars' can be kept on deposit across the world; the same goes for any major global currency. This means a US company seeking to borrow dollars cheaply can do so by issuing eurobonds in different regions, such as Europe or Asia; it is not limited solely to using the US bond markets.

The exact origin of the term eurobond is debated, but it is thought to come from a post-war deal that involved the Russians issuing dollar-denominated bonds in Europe, rather than America.

Watch Tim Bennett's video tutorial: What is a eurobond?

Recommended

Modern monetary theory (MMT)
Glossary

Modern monetary theory (MMT)

Modern Monetary theory, or MMT, has become popular on the left, both in the UK and abroad. (Wags say that it stands for "magic money tree".) 
21 Sep 2020
Price to sales ratio
Glossary

Price to sales ratio

A company's market cap divided by the company's annual sales (or revenue) gives us the price/sales ratio.
28 Aug 2020
Too embarrassed to ask: what is a p/e ratio?
Too embarrassed to ask

Too embarrassed to ask: what is a p/e ratio?

Find out how to use the price/earnings ratio (p/e ratio for short) – a useful starting place for investors looking to value a company.
26 Aug 2020
Stock split
Glossary

Stock split

A stock split increases the number of a corporation's issued shares by dividing each existing share.
21 Aug 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020