What are International coverage?
Bonds issued and traded by a country or a company that´s not domestic for the investor.
Types of International coverage:
Domestic bonds- bonds that are issued and then traded with the regulations of the borrower´s country.
Eurobonds- issued on the market once an international company uses a domestic currency and once traded, it´s doneyo be outiside of the country´s domestic market.
Foreign bonds- made in a domestic country by a foreign company but using the regulations of the domestic country.
Dollar-denominated bonds, divided in 2- Yankee bonds (within the U.S.) and Eurodollar bonds (traded on the secondary market). They are sold and traded in domestic, foreign and Euro markets.
How much do an International coverage costs?
Depends on the deal made with the borrower and their regulations.
How does an International coverage work?
Bonds that are issued and traded across national boundaries in an international bond market, which is a market for foreign currency.