Global Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 634
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Definition: Global Bond

These bonds can be traded immediately in the domestic capital markets as well as in the Euromarkets. Global Bonds can be fixed or floating rate type. These carry maturity period from 1 to 30 years. These are issued by the well known companies or by the multinational organizations.


It is a way to diversify one’s portfolio. Especially if the portfolio is limited to a particular denomination or to one particular country's bond.


Example

A U.S. organization can issue a bond in Europe. Global Bond is a strategy to generate income through investment in bonds and securities denominated in various currencies issued by government and other multinational organizations.

 

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