Yankee Bond - Definition

A Yankee bond is a US dollar denominated bond issued in the US by a foreign issuer. The purpose is to raise more money than the issuers may be able to borrow in their home markets, either because there is more money available for Investment in the United States, or because the Interest Rate the issuers must pay to attract investors is lower.

The reasons for issuing a yankee bond are much the same as for other foreign currency bonds, but:

1. The size of the US bond market makes it attractive to borrowers who wish to raise very large amounts. These include countries issuing sovereign debt.

2. The size of the US economy and the common use of the dollar in international trade means that many companies have dollar income streams with which to pay dollar debt.

Terms near "Yankee Bond"

Yankee Certificate Of Deposit

Yankee Market

Yard

Year over year (YOY)

Year to Date (YTD)

YER

YER

Yield

Yield Curve

Yield on cost (YOC)