Definition of Maple Bond
What is a Maple Bond
A Maple bond is a type of debt security issued by a foreign entity in the Canadian market, denominated in Canadian dollars (CAD). These bonds enable foreign institutions to raise capital in Canada, while also providing Canadian investors with the opportunity to invest in international entities without being exposed to currency risk.
The name "Maple bond" is inspired by the maple leaf, a symbol that is closely associated with Canada and is featured prominently on the country's national flag. The term is used to differentiate these bonds from other types of foreign currency-denominated bonds, such as Yankee bonds (issued in the United States), Samurai bonds (issued in Japan) and Eurobonds (issued in the European market).
Why Issue a Maple Bond
By issuing Maple bonds, foreign institutions can access the Canadian capital market, diversify their funding sources, and potentially take advantage of favorable interest rates or investor demand. For Canadian investors, Maple bonds offer a way to diversify their investment portfolio by gaining exposure to international entities without the need to convert their investments into foreign currencies.
GlobEx Markets Financial Dictionary of Terms, Phrases and Concepts
The GlobEx Markets financial dictionary is a reference resource that provides the definitions and explanations of various financial terms, phrases and concepts that are used in international finance and global investing. It includes a broad range of financial terms, such as those related to stocks, bonds, currencies, commodities, options, futures, crypto and much more.
A financial dictionary can be useful for anyone who wants to learn more about finance and investing, or who works in the financial industry. It can help clarify the meaning of technical terms and the language used in financial publications, reports and other sources.
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There are several benefits to using the GlobEx Markets financial dictionary, including:
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Overall, the GlobEx Markets financial dictionary can help improve your understanding of international finance and global investing. It is a valuable tool for anyone who works in the financial industry or who wants to improve their financial literacy.