Dual Currency Bond
Dual currency bonds are subject to exchange rate risk. If the currency in which the principal will be repaid appreciates, the bondholder will make money; if it depreciates, he or she will lose money. Investors can use dual currency swaps, which have a fixed exchange rate at issuance, to offset the exchange risk of dual currency bonds.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Dual currency bond — Dual currency bọnd [ djuəl kʌrənsɪ ; englisch], Doppelwährungsanleihe … Universal-Lexikon
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 … Financial and business terms
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 bond — Fin a bond that pays interest in a currency other than the one used to buy it … The ultimate business dictionary
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
Dual Currency Issue — A bond that pays interest in one currency but pays the principal in a different currency. The amount of the principal repayment is set at initiation and paid at maturity. This principal amount usually allows for some appreciation in the exchange… … Investment dictionary
Power reverse dual currency note — A dual currency note (DC) pays coupons in the investors domestic currency with the notional in the issuers’ domestic currency. A reverse dual currency note (RDC) is the reverse. A power reverse dual currency note (PRDN) or power reverse dual… … Wikipedia
Bond duration — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
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