What are the major differences between foreign bonds and Eur

What are the major differences between foreign bonds and Eurobonds? Why do some US companies prefer to issue Eurobonds to raise US dollars from foreign markets?

Solution

A Eurobond is long term bond issued and sold by the compnies outside the country in which it is dominated. If US company issued a bond in dollar and selling it to Japanese investors in Japan then it is know as Eurobond.

Foreign is also sold in the other courtry but it is issued in that country currency as well that\'s a difference from Eurobond. US company selling and issuing a bond in Yen for Japanese investors.

US companies issue Eurobonds because in that way US companies can hedge its currency risk.