Non-U.S. Market Debt Securities

What this video covers

• The three risks stacked on sovereign debt (political, currency, credit) and why political risk never drops to zero, even for highly rated countries
• How currency denomination acts as an on/off switch for currency risk, and why U.S. dollar denomination fixes only that one risk
• What foreign corporate bonds add on top of standard credit risk: different accounting standards, lighter regulatory oversight, and capital controls
• Yankee bonds: foreign issuers selling in the U.S., denominated in U.S. dollars, and required to register with the Securities and Exchange Commission (SEC)
• Eurodollar bonds: U.S. dollar-denominated bonds issued outside the U.S., not SEC-registered, often sold to institutions in bearer form
• Why "Euro" means outside the currency's home country, so a Euroyen bond is a yen bond issued outside Japan
• The Yankee vs. Eurodollar showdown: both kill currency risk for U.S. investors, but only Yankee bonds require SEC registration