Advertisement

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.

Advertisement - Article continues below

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?

Advertisement
Advertisement

Recommended

Visit/glossary/bonds
Glossary

Bonds

A bond is a type of IOU issued by a government, local authority or company to raise money.
19 May 2020
Visit/spending-it/glossary/601300/quantitative-investing
Glossary

Quantitative investing

Quantitative investing uses sophisticated computer-based mathematical models to identify and carry out trades.
8 May 2020
Visit/glossary/quantitative-easing-qe
Glossary

Quantitative easing (QE)

Quantitative easing (QE) involves electronically expanding a central bank's balance sheet.
8 May 2020
Visit/glossary/600702/emerging-markets
Glossary

Emerging markets

An emerging market is an economy that is becoming wealthier and more advanced, but is not yet classed as "developed".
24 Jan 2020

Most Popular

Visit/economy/uk-economy/601427/covid-bounce-back-loans-and-inflation
UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020
Visit/investments/commodities/601433/commodities-possibly-the-biggest-opportunity-in-todays-markets
Commodities

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020
Visit/economy/global-economy/601420/james-ferguson-the-virus-the-lockdown-and-what-comes-next
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020