ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is a Samurai Bond? A Samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company and subject to Japanese regulations.

Detailed explanation-2: -For example, a US dollar-denominated bond issued in the US market by an issuer that resides outside the United States. Foreign bonds denominated in US dollars are known as Yankee bonds, those denominated in yen as Samurai bonds, and those denominated in Chinese yuan as Panda bonds.

Detailed explanation-3: -An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity.

Detailed explanation-4: -A foreign bond is a bond issued in a domestic market by a foreign entity in the domestic market’s currency as a means of raising capital. For foreign firms doing a large amount of business in the domestic market, issuing foreign bonds, such as bulldog bonds, Matilda bonds, and samurai bonds, is a common practice.

Detailed explanation-5: -A foreign currency convertible bond (FCCB) is a convertible bond that is issued in a foreign currency, which means the principal repayment and periodic coupon payments will be made in a foreign currency. For example, an American listed company that issues a bond in India in rupees has, in effect, issued an FCCB.