Yankee Bond
A bond denominated in U.S. dollars and is publicly issued in the United States by foreign banks and corporations. According to the Securities Act of 1933, these bonds must first be registered with the Securities and Exchange Commission (SEC) before they can be sold. Yankee bonds are often issued in tranches and each offering can be as large as $1 billion. Investopedia Says:
Due to the high level of stringent regulations and standards that must be adhered to, it may take up to 14 weeks (or 3.5 months) for a Yankee bond to be offered to the public. Part of the process involves having debt-rating agencies evaluate the creditworthiness of the Yankee bond's underlying issuer.
Foreign issuers tend to prefer issuing Yankee bonds during times when the U.S. interest rates are low, because this enables the foreign issuer to pay out less money in interest payments. Related Terms:
Bond
Bulldog Bond
Dragon Bond
Foreign Bond
Maple Bond
Matilda Bond
Ratings Service
Samurai Bond
Tranches |