What are Eurobonds?

Eurobonds came into being in 1960s, which is an international bond with the formation of European money market. After the 1960s, the American government was forced to take a series of restrictive measures because of the continuous outflow of American funds. 1in July, 963, the U.S. government began to levy an "interest balance tax", which stipulated that all interest earned by American residents when they bought foreign bonds issued in the United States should be taxed. 1965, the U.S. government issued regulations requiring banks and other financial institutions to limit the amount of loans to foreign borrowers. These two measures make it difficult for foreign borrowers to issue US dollar bonds or obtain US dollar loans in the United States. On the other hand, in the 1960s, many countries had large dollar surpluses and needed to invest in the lending market to earn interest. Therefore, some European countries began to issue dollar bonds outside the United States, which is the origin of European bonds. At first, European bonds were mainly denominated in US dollars and issued mainly in Europe. After the 1970s, with the increase of the fluctuation of the exchange rate of the US dollar, the proportion of European bonds denominated in German marks, Swiss francs and Japanese yen gradually increased. At the same time, the issuing places began to break through the geographical restrictions in Europe, and the number of European bonds issued in Asia-Pacific, North America and Latin America increased day by day. European bonds have developed very rapidly since they came into being. 1992 issued bonds of $276 1 billion, and 1996 increased to $5910.6 billion. In international bond markets, the proportion of European bonds far exceeds that of foreign bonds.