How Are Eurobonds and U.S. Government Bonds Similar?
U.S. government bonds are Treasury bonds, also called Treasuries; Agency bonds, a.k.a. Agencies, issued by certain agencies of the U.S. federal government; and the popular Savings Bonds Series EE and I. All three carry the full faith and credit of the United States government. Eurobonds are bonds issued exclusively in a European country’s bond market and denominated in a currency other than that country’s. For example, if General Motors issues bonds in Europe, payable in dollars, they are dollar Eurobonds; if payable in Yen, they are Yen Eurobonds. While U.S. government bonds and Eurobonds share basic bond characteristics, they also differ in important aspects, such as liquidity, risk and form of ownership.
