2.  Foreign Bond  Euro Bond  Foreign bank market  Loans from euro currency market

3.  Bond sold in a foreign country in the currency of the country of issue  E.g McDonald Inc sells a £ denominated bond in the UK

4.  Portion of the domestic bond markets that represent issues floated by foreign companies or govts. As such, foreign bonds are subject to local laws & denominated in the local curency

5.  Fixed rate issues  Floating rate notes(FRNs)- variable rates reset at fixed intervals(3 or 6 months)  Equity-related bonds: convertible bonds or bonds issued with equity warrants

6.  Bond denominated in a currency that is not that of the country in which it is issued. E.g McDonald Inc issues a US$ denominated bond in the UK  Bonds sold outside the countries in whose currencies they are denominated

7.  Similar as for foreign bonds  Moreover, entirely free of official regulation; self- regulated by the Association of International Bond Dealers

8.  Foreign bonds are usually sold by brokers in the country in which they are issues  Must decide on the country of issue  Euro bonds are sold by international syndicates of banks or brokers- generally sold simultaneously in a no. of countries  Must decide on country of issue and currency

9.  Represents that portion of domestic bank loans supplied to foreigners for use abroad

10.  A freely convertible currency deposited in a bank outside its country of origin. Thus, US$ deposited in London become Euro$

11.  Loans made from euro currency markets are on a floating rate basis  Maturity of loans: 3-10 years  Loans made from euro currency markets are on a floating rate basis  Maturity of loans: 3-10 years

12.  What is better? Fixed rate debt or floating rate debt  Investigate the difference between a euro bond and a euro currency loan  What is better? Fixed rate debt or floating rate debt  Investigate the difference between a euro bond and a euro currency loan