What is a global bond?
Global bond is a link offered in several different markets simultaneously. The bond is a investor loan or the government in exchange for an interest rate prefix. The investor may be a corporation or an individual. The bond holder gains interest based on the power of society. Some examples of companies issued by these bonds are automobile companies such as Ford in the United States or International Banks such as ABN-AMRO in the Netherlands. A global bond can also be issued from a province like Ontario, Canada.
Global bonds are issued in various currencies and distributed in the currency of the country where it is issued. For example, a global bond issued in the United States will be in US dollars (USD), while a global bond issued in the Netherlands will be in euros. Bonds are borrowed in terms of years; For example, a three -year global USD loan will be repaid a country that is borrowed within three years at a nominal value plus interest rate.
Global bonds offer a loan to several businesses at the same time, which significantly reduces the cost of loans. As far as loans are concerned, global bonds are a relatively safe method of international investment. Political and monetary risks are minimized with a global government bond because they are registered with the Securities and Stock Exchange Commission (SEC) and must meet certain criteria before issuing. In addition, the credit rating is assigned to the global bonds of S&P and Moody's Investor Service.
Theglobal bond market can be divided into two divisions: the internal bond market and an external bond market. The internal or national bond market can be further divided into a domestic bond market and a foreign bond market. The domestic market describes trading with a bond country where the bond is issued. The foreign bond market explains what will happen to the global bond in countries outside the place of issuing.
market with an external bond, also calledThe international bond market offers bonds to investors in different countries. It is different from the foreign bond market in that it is issued outside the jurisdiction of one country. It is also called the bond market at sea or the Eurobond market because it has started in Europe, this market sees the exchange of global bonds through the national borders.