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Bulldog Bonds Definition

Definition

The word bull dog bond identifies a indenture issued at the United Kingdom, in British pound sterling, with way of a foreign bank or business. Bulldog bonds have been issued if a foreign business wants to raise funding from investors located in the United Kingdom.

Explanation

Foreign corporations who desire to improve funds from the United Kingdom have the option of issuing what are called bull-dog bonds. That is generally achieved while the rates of interest from the U.K. are non in accordance with the foreign firm ‘s national rates of interest. Issuing a bull dog bond enriches their curiosity expenditure. These bonds may also be popular with investors desperate to diversify their portfolios.

Bulldog bonds are often issued in pound-sterling denominations with way of a foreign exchange (non-British) firm or authorities. The definition of “bulldog” is really a mention of the creature that functions as a national emblem in England, that was associated with Winston Churchill during World War II.