Eurobond

A Eurobond is no relation to James Bond. In fact a Eurobond has a much less dramatic life, but like James it's known in all the major capitals!

A Eurobond is a medium or long-term interest-bearing bond created in the international capital markets that is denominated in a currency other than that of the country of its origin. This means, among other things, that interest on such bonds is usually paid gross - without tax being deducted.

Despite the similarity in the name, Eurobonds have been around much longer than the Euro and have no direct link to the single European currency. Of course, many Eurobonds are denominated in Euros but equally there are many denominated in the other major currencies: dollars (Eurodollar bonds) or yen (Euroyen bonds) or even sterling ( Eurosterling bonds )

Eurobonds are issued by large borrowers such as governments and other public bodies or major multinational companies

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2007 © Moneyextra.com

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