A foreign bond is underwritten by a syndicate composed of members from a single country, sold principally within that country, and denominated in the currency of that country. The issuer, however, is from another country. A bond issued by a firm resident in Sweden, denominated in dollars, and sold in the United States to U.S. investors by U.S. invest bankers, would be a foreign bond. Foreign bonds have nicknames: foreign bonds sold in the United States are “Yankee bonds,” foreign bonds sold in Japan are “Samurai bonds,” and foreign bonds in the United Kingdom are “Bulldogs.”
Foreign bond is a bond, issued by a foreign corporation or government for sale in the domestic capital market of another country, and denominated in the currency of that country.