Uridashi Bonds Definition

Forex Glossary


The term Uridashi bond identifies a indenture issued out Japan, at a non-yen denomination, also sold to Japanese investors. Uridashi bonds have been issued whenever there’s a substantial return gap between the foreign and foreign money.


Foreign corporations who desire to raise funding in Japan have the option of issuing what are called Uridashi bonds. These bonds have been sold by non-domestic in addition to domestic entities, including corporations, financial institutions and authorities, and so are issued at a foreign exchange (non-yen).

Uridashi bonds are all attractive to Japanese investors thinking about holding debt that’s issued at a high-yield, non-domestic money. This gives those investors with the chance to accomplish a greater interest rate in accordance with national bonds. But, if a trader buys a security that’s issued in a foreign currency, they have been carrying in a market rate risk. That’s to say, in the event the worth of this foreign money losses in accordance with the Japanese yen as time passes, the Uridashi bond will probably go back to the invest or fewer yen than when originally purchased.

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