Foreign convertibles are pretty sweet: top down in the sun, and up in the rain.
Likewise, some investors are fans of foreign currency convertible bonds, or FCCBs.
Foreign currency convertible bonds are convertible bonds (we’ll go over that in a sec) that are issued in a foreign currency relative to the issuer. So if you’re an American bond issuer, you could issue a foreign currency bond in any currency that’s not USD (otherwise, it’d just be a bond...a U.S. bond).
Convertible bonds, like convertible cars, let investors switch things up depending on the weather. The default for a convertible bond is to act like a regular bond, with things like coupon and principal payments...but it can be converted into stock.
Putting it altogether: a FFCB is a bond (one that can be converted into stock) that’s issued in a different currency than the issuer’s domestic currency. Get some.
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Finance: What is a Yankee Bond?36 Views
Finance allah shmoop what is a yankee bond We're safe
We're sound we're saying at least that's how we look
financially when you know the u s has compared with
most of the rest of the world that's why a
bunch of countries issue their own bonds denominated in u
s dollars you know countries like panama el salvador micronesia
and macron asia Well ours is ah hard currency and
that we don't or at least haven't historically created massive
ten percent a month inflation to deflate the value of
our own currency and well that would make it super
easy for our government to pay off its ludicrously high
death but we don't do that We respect the people
who loaned money to us including our own citizens So
we have a hard currency It just kind of stays
where it is Yes there's inflation Yes we raise the
rates a little bit here and there defended but generally
just kind of does its thing So we fight hard
to keep that trust that the rest of the world
often values more than well trust in their own governments
or at least their own government's ability to manage their
currency when they issue say argentinean bonds payable in u
s dollars Well then that's a yankee bond And we 00:01:14.819 --> [endTime] are the banker And well they are the yankee
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