Definition of Yankee Bond
What is a Yankee Bond
A Yankee bond is a type of bond issued in the United States by a foreign entity, typically a foreign corporation or government. Yankee bonds are denominated in US dollars and are subject to US securities laws and regulations.
Yankee bonds are often issued by entities that want to raise capital in the US market, take advantage of lower borrowing costs in the US or diversify their sources of capital funding. Yankee bonds are usually registered with the US Securities and Exchange Commission (SEC) and can be traded on US exchanges.
Yankee bonds are considered to be a type of Eurobond, which are bonds issued outside the country of the currency in which they are denominated. The term “Yankee bond" comes from the fact that these bonds are issued by foreign entities but denominated in US dollars.
Risks to Yankee Bonds
Investors who purchase Yankee bonds are exposed to both credit risk and foreign exchange risk, as the value of the bond will depend on the creditworthiness of the issuer and fluctuations in the exchange rate between the US dollar and the issuer's home currency.
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.
Benefits of the GlobEx Markets Financial Dictionary
There are several benefits to using the GlobEx Markets financial dictionary, including:
- Clarifying Technical Terminology: The financial world is filled with complex terms and language that can be confusing to those who are not familiar with it. A financial dictionary can help clarify the meaning of technical terms and make them more understandable.
- Improving Financial Literacy: By learning the meaning of financial terms, phrases and concepts, you can improve your overall financial literacy and gain a better understanding of the workings of the financial world.
- Enhancing Communication: A financial dictionary can help improve communication among financial professionals by ensuring that everyone is using the same terminology, phrases and concepts.
- Supporting Research: When conducting financial research or analysis, a financial dictionary can be a valuable resource for identifying and understanding key terms, phrases and concepts.
- Facilitating Decision-Making: Understanding financial terms, phrases and concepts can help you make better-informed financial decisions, whether you are managing your own finances or making decisions on behalf of an organization.
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.
Related Investment Terms
Dim Sum Bond (Hong Kong)
Kangaroo Bond (Australia)
Samurai Bond (Japan)
