Any financial arrangement that originates in one country for the benefit of someone in another country is known as cross-border financing.
It can include loans, letters of credit, and bank acceptances. International banks make it easier for companies to finance their various operations in different countries.
Why is it called out separately? Like...why is this term even a thing?
Because laws, and the collection of money, are different in different countries. So are tax and transaction costs. And, generally speaking, a lot more risk is called in when loaning money outside of your own country.
Imagine loaning money to an Arab country where Sharia laws exist which prohibit the collection of interest on loans. Yeah. Good luck collecting.
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Finance: What is a Yankee Bond?36 Views
Finance allah shmoop what is a yankee bond We're safe
We're sound we're saying at least that's how we look
financially when you know the u s has compared with
most of the rest of the world that's why a
bunch of countries issue their own bonds denominated in u
s dollars you know countries like panama el salvador micronesia
and macron asia Well ours is ah hard currency and
that we don't or at least haven't historically created massive
ten percent a month inflation to deflate the value of
our own currency and well that would make it super
easy for our government to pay off its ludicrously high
death but we don't do that We respect the people
who loaned money to us including our own citizens So
we have a hard currency It just kind of stays
where it is Yes there's inflation Yes we raise the
rates a little bit here and there defended but generally
just kind of does its thing So we fight hard
to keep that trust that the rest of the world
often values more than well trust in their own governments
or at least their own government's ability to manage their
currency when they issue say argentinean bonds payable in u
s dollars Well then that's a yankee bond And we 00:01:14.819 --> [endTime] are the banker And well they are the yankee
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