Dollar Bond

Factoid: Some U.S. bonds are traded outside of the U.S.? Shocking. Yeah, so if you thought you were a special American with special access to the U.S.’s special bonds, you’re wrong.

A dollar bond is a U.S. bond traded outside U.S. borders, and paid in USD for principal and coupon payments.

Why keep it in dollars? Well...for now anyway...the dollar is considered a relatively stable and strong currency on the world stage, so it attracts investors, and more investors is good for the U.S. I scratch your back, you invest in U.S. bonds.