Dual Currency Bond

Dual Currency Bond
   A bond that pays a coupon in one currency, but is redeemed for a fixed amount of another currency, often the dollar. Investors usually get an above-market coupon, but run the risk that, in this example, the dollar would fall below the exchange rate implied when the amount was fixed. These bonds are attractive to borrowers who operate in the redemption currency because they have no long-term exchange rate risk. For other borrowers, the guaranteed exchange rate can be used in a swap, for example, with corporations having liabilities in the currency of issue.
   ► See also Swap.

Financial and business terms. 2012.

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Look at other dictionaries:

  • Dual currency bond — Dual currency bọnd   [ djuəl kʌrənsɪ ; englisch], Doppelwährungsanleihe …   Universal-Lexikon

  • Dual Currency Bond — A debt instrument in which the coupon and principal payments are made in two different currencies. The currency in which the bond is issued, which is called the base currency, will be the currency in which interest payments are made. The… …   Investment dictionary

  • dual-currency bond — A bond with the interest paid in one currency and the principal paid in another. Exchange Handbook Glossary …   Financial and business terms

  • dual currency bond — /ˌdju:əl kʌrənsi bɒnd/ noun a bond which is paid for in one currency but which is repayable in another on redemption …   Dictionary of banking and finance

  • Dual Currency Swap — A currency swap used to hedge the risk associated with the issuance of a dual currency bond. A dual currency swap allows the bond issuer to repay the principal and coupon in the base currency or another currency. Exchange rates are preset in dual …   Investment dictionary

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  • Двухвалютная облигация — еврооблигация, по которой проценты выплачивают в одной валюте по фиксированному курсу, а основная часть в другой валюте. По английски: Dual currency bond Синонимы английские: Dual currency issue См. также: Еврооблигации Финансовый словарь Финам …   Финансовый словарь

  • china — /chuy neuh/, n. 1. a translucent ceramic material, biscuit fired at a high temperature, its glaze fired at a low temperature. 2. any porcelain ware. 3. plates, cups, saucers, etc., collectively. 4. figurines made of porcelain or ceramic material …   Universalium

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