Yankee_bond
Yankee Bond
Foreign bond issued in the United States
A Yankee Bond is a bond issued by a foreign entity, such as a bank or company, that is issued and traded in the United States and denominated in U.S. dollars.[1] For instance, Company ABC is headquartered in France. ABC issues dollar bonds in the United States, the bonds are Yankee bonds. Yankee bonds are normally issued in tranches, a debt structure that divides the investment into portions. Typically each portion has a different level of risk, interest rates, and maturities. Investors buy Yankee bonds to access overseas firms. Yankee bonds are like other bonds. The borrower pays interest and principal.[2] Yankee Bonds are administered by the Securities Act of 1933.[3] Issuers register Yankee Bonds with the Securities and Exchange Commission (SEC) before offering them for sale.