Definition of Bulldog bond:
A sterling bond issued on the UK market by a foreign borrower.
Bulldog bond is a type of bond purchased by buyers interested in earning a revenue stream from the British pound or sterling. A bulldog bond is traded in the United Kingdom. If the revenue is used to reduce debt that is also in British pounds, the exchange rate risk is decreased.
Pound-sterling denominated bond underwritten in the UK, and issued in the UK by a foreign firm or government.
A company may choose to enter a foreign market if it believes that it would get attractive interest rates in this market or if it has need for the foreign currency. When a company decides to tap into a foreign market, it can do so by issuing foreign bonds, which are bonds denominated in the currency of the intended market. Simply put, a foreign bond is issued in a domestic market by a foreign issuer in the currency of the domestic country. Foreign bonds are mainly used to provide issuers with access to another capital market outside of their own to raise capital.
How to use Bulldog bond in a sentence?
- These sterling bonds are referred to as bulldog bonds as the bulldog is a national symbol of England.
Meaning of Bulldog bond & Bulldog bond Definition