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Bulldog Bond

A bulldog bond refers to a type of bond issued in the British market by non-British entities. The term bulldog is used to denote bonds that are issued in sterling pounds by foreign companies or governments. These bonds are marketed to UK-based investors and are regulated by the Financial Conduct Authority (FCA).


A bulldog bond is essentially a foreign bond denominated in British pounds. It offers non-British entities the opportunity to raise capital in the UK market. The term bulldog is derived from the association of the British bulldog with the country’s heritage and culture. By issuing bonds in sterling pounds, foreign entities can tap into the depth and liquidity of the British market while diversifying their funding sources.


Bulldog bonds typically have longer tenors, often ranging from 10 to 30 years. They are generally fixed-rate bonds, providing investors with a predictable cash flow stream over the bond’s lifespan. The interest payments on bulldog bonds are usually made semi-annually, offering investors a regular income.

One of the key features of these bonds is that they are issued by non-British entities. This can include foreign corporations, governments, supranational organizations, or even sovereign wealth funds. The issuers may have diverse credit ratings, ranging from investment grade to non-investment grade or even high-yield. As with any investment, the creditworthiness of the issuer plays a significant role in determining the interest rate and demand for bulldog bonds.


For issuers, bulldog bonds provide access to the deep and liquid UK market, offering them greater flexibility in managing their funding needs. By tapping into a new investor base, they can diversify their sources of funding and potentially obtain more favorable interest rates. Additionally, issuing bonds denominated in British pounds allows entities to match their liabilities with revenues generated in the UK or to take advantage of specific investment opportunities in the country.

On the investor side, bulldog bonds can be an attractive addition to a diversified portfolio. They provide exposure to foreign entities while mitigating currency risk since the bonds are denominated in the local currency. Investors may also benefit from higher yields compared to domestic bonds, depending on the creditworthiness of the issuer. Furthermore, bulldog bonds can enhance the overall liquidity of the UK bond market, contributing to its robustness.


Although bulldog bonds offer advantages, there are certain considerations for both issuers and investors to keep in mind. From an issuer’s perspective, tapping the UK market may require compliance with specific regulatory requirements set by the FCA. Companies must ensure they meet the necessary criteria and follow the guidelines to successfully issue bonds in the UK.

Investors should carefully evaluate the creditworthiness of the issuer before investing in bulldog bonds. As these bonds are typically issued by non-British entities, investors need to conduct thorough due diligence to assess the financial health and risk profile of the issuer. Factors such as the issuer’s credit rating, financial performance, and market conditions should be carefully analyzed to make informed investment decisions.


Bulldog bonds are a type of bond issued in the UK market by non-British entities, denominated in British pounds. They allow foreign companies and governments to raise capital in the UK while taking advantage of the depth and liquidity of the market. Issuers can diversify their funding sources, match their liabilities, and tap into new investor bases, while investors can achieve portfolio diversification and potentially higher yields. However, both issuers and investors should consider factors such as regulatory compliance, creditworthiness of the issuer, and market conditions when dealing with bulldog bonds.