In: Finance
What is the relationship international bond and domestic bond market from operating, investing, and financing activities for a company?
Domestic bond market These markets are made up of the bonds that are issued from the government ,corporation ,sub-sovereign and others sources of a particular country. It refers to the bond that is issued within the internal market of the country. The process of this market's bond from the issuance to its redemption is under country's law and regulation.
International Bond market: This market is comprised of Eurobond market and foreign bond market. Eurobond market comprises of those bonds which currency are denominated in different country's currency in which bond are issued. Foreign bond market comprises of bonds that are issued by borrowers entities, which are not a part of the country in which bonds are issued.
The relationship between the two are totally opposite with each other .Under domestic bond market, there is lower currency risk for the bond issued, whereas under international bond , the currency risk is higher.