Foreign Bonds

Posted in Finance, Accounting and Economics Terms, Total Reads: 900
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Definition: Foreign Bonds

Foreign bonds are bonds offered by a foreign company/enitity in the domestic market. These bonds are issued in the domestic market and are usually purchased by domestic investors.

They enable investors to diversify their portfolio by including bonds of a foreign entity. However, since they are denominated in the domestic currency, they may not be very effective in diversification.

 

 

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