Moneyzine
Contents
/Investment Guides /Samurai Bonds

Samurai Bonds

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 21st, 2023
Advertiser Disclosure

Definition

The term samurai bond refers to an indenture issued in Japan, in Japanese yen, by a foreign bank or corporation. Samurai bonds are issued when a corporation wishes to raise capital from investors located in Japan.

Explanation

Foreign corporations that wish to raise funds in Japan have the option of issuing what are known as samurai bonds. These bonds are sold by non-domestic entities, including corporations, financial institutions and governments, and are issued in Japanese yen. Samurai bonds are subject to local regulations. This is typically done when the interest rates in Japan are low relative to the foreign corporation's domestic rates, which lowers their interest expense.

Since the bond is issued in Japan's domestic currency, investors located in Japan are also insulated from currency exchange rate risk. Foreign companies will usually issue these securities if they have plans to establish operations in Japan. These bonds are also attractive to investors wishing to geographically diversify their portfolios.

At one time, Samurai were the military nobility and officers of Japan, and were trained to exhibit self-discipline.

Related Terms

kangaroo bond, bulldog bond, maple bond, matrioshka bond, panda bond

Explore Investing Further

Trading has never been easier, thanks to the rise of online platforms that enable you to buy and sell various assets at the click of a button. But with so many options available, it can be challenging to decide which platform is right for you.
Looking for a way to avoid swap fees while trading forex?
Below listed are the small reviews of the top 10 ETF brokers available across the United States.
Our top beginner's pick for copy trading is eToro. Read on for more details, plus seven good alternatives.
Swing trading stocks can be a great way for investors to take advantage of short-term stock market movements and gain significant returns. If you're interested in swing trading, the key to success lies in selecting the right stocks to buy and sell quickly for a profit.
The table below lists the best stock picks under $2, listed on public exchanges.
The table below lists the best stock picks under $1, listed both on public and OTC exchanges.
This section will highlight the best EV-trading penny stocks available in the United States.
The demand for sustainable energy has grown rapidly in recent years. This has resulted in increased scrutiny of the automotive market. As a result, the electric vehicle (EV) industry has made significant advancements.
Intelligent Bio Solutions Inc. is a life sciences company, founded in 2016 with headquarters in New York and is engaged in performing diagnostic tests, real-time monitoring, and non-invasive surgery for its patients. The firm has developed a CoV-2 Biosensor, which can be used in RNA virus detection.
Hour Loop was founded in 2013 with headquarters in Redmond, Washington. It’s an online retailer involved in e-commerce in the United States that hit the public markets on Jan 7th of 2022. The company sells home/garden decor, electronic products, kitchenware, and apparel through walmart.com, amazon.com, and hourloop.com.

Contributors

Moneyzine 2024. All Rights Reserved.