SAMURAI BOND Meaning and
Definition
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A Samurai bond refers to a type of foreign bond issuance denominated in Japanese Yen, typically offered by non-Japanese entities or sovereign governments to investors in Japan. This financing instrument allows foreign issuers to tap into the Japanese capital market and attract Japanese investors to participate in their debt offerings.
The term "Samurai" in Samurai bond draws a historical parallel to the warrior class of feudal Japan known as the samurai. This metaphor symbolizes foreign entities entering Japan's financial market, akin to these legendary warriors taking on a new territory.
Samurai bonds are subject to the regulatory framework of Japan, including the guidelines set by the Ministry of Finance and the Tokyo Stock Exchange. These bonds are often medium to long-term in nature, with maturities ranging from three to ten years, making them suitable for investors seeking investment opportunities with longer durations.
The interest rate on Samurai bonds is typically fixed and paid semi-annually, providing stability and a predictable income stream for investors. The credit risk associated with the bonds depends on the issuer's creditworthiness, and ratings agencies typically assign credit ratings to Samurai bonds to guide investors in assessing their investment risks.
Overall, Samurai bonds offer a unique opportunity for foreign entities and sovereign governments to diversify their funding sources and access the Japanese capital market, while giving Japanese investors exposure to bonds issued outside their domestic market.
Common Misspellings for SAMURAI BOND
- aamurai bond
- zamurai bond
- xamurai bond
- damurai bond
- eamurai bond
- wamurai bond
- szmurai bond
- ssmurai bond
- swmurai bond
- sqmurai bond
- sanurai bond
- sakurai bond
- sajurai bond
- samyrai bond
- samhrai bond
- samjrai bond
- samirai bond
- sam8rai bond
- sam7rai bond
- samueai bond
Etymology of SAMURAI BOND
The word "Samurai bond" originated from the combination of two distinct elements: "Samurai" and "bond".
1. Samurai: The term "Samurai" refers to a class of highly skilled warriors who were prominent in feudal Japan from the 12th to the 19th century. Samurai were known for their loyalty, martial proficiency, and adherence to a strict code of conduct known as Bushido. The term "Samurai" comes from the Japanese words "saburau" (to serve) and "samuru" (to look after or protect), reflecting their role as protectors and servants of their lords.
2. Bond: In the financial context, a "bond" is a debt security, where the issuer borrows money from investors and promises to repay the borrowed amount, along with periodic interest payments, over a specific duration.
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