International Bonds, Currency Risk, and Emerging Market Debt

In this section

• Globalization of Bond Markets
  Review how bond markets expanded across borders and how major international markets developed.
  • Growth of International Bond Markets
    Understand the main forces that expanded cross-border bond issuance and investment.
  • Major International Bond Markets
    Study the main regional bond markets and how they differ in size, liquidity, and issuer mix.
• Types of International Bonds and Issuance Structures
  Compare foreign bonds, eurobonds, and global bonds used in international fixed income markets.
  • Foreign Bonds
    Learn how foreign bonds are issued into domestic markets by nonresident issuers.
    • Yankee Bonds
      Review U.S. dollar foreign bonds issued in the United States by non-U.S. borrowers.
    • Samurai Bonds
      Understand yen-denominated foreign bonds issued in Japan by non-Japanese entities.
    • Bulldog Bonds
      Study sterling-denominated foreign bonds issued in the United Kingdom by overseas borrowers.
  • Eurobonds
    Review eurobond issuance outside the domestic market of the currency in which the bond is denominated.
    • Eurobond Characteristics and Advantages
      Understand the main structural features and market advantages associated with eurobond issuance.
    • Eurodollar Bonds
      Study U.S. dollar bonds issued outside the United States in offshore international markets.
  • Global Bonds
    Learn how global bonds are issued simultaneously across multiple markets and investor bases.
• Currency Risk and Hedging in International Bonds
  Study how exchange-rate movements affect returns and how investors hedge currency exposure.
  • Exchange Rates and Bond Returns
    Understand how currency movements alter the local and home-currency return of international bonds.
  • Currency Hedging Techniques
    Compare the main instruments used to hedge foreign-currency exposure in bond portfolios.
    • Forward Contracts for Currency Hedging
      Review how forward contracts are used to lock in exchange rates for future cash flows.
    • Currency Swaps
      Understand how currency swaps exchange principal and interest streams across currencies.
    • Currency Options
      Learn how currency options provide asymmetric protection against unfavorable exchange-rate moves.
• Emerging Market Debt
  Study the return drivers, credit risks, and market structure of emerging market fixed income.
  • Opportunities and Risks in Emerging Market Debt
    Review the potential yield benefits and major risk factors found in emerging market debt investing.
  • Sovereign vs. Corporate Emerging Market Bonds
    Compare sovereign and corporate issuers within emerging market debt and their key risk differences.
  • Country Risk Analysis
    Understand how political, economic, and external-balance risks affect international bond investing.