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Finance: What is Devaluation?
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What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...

Finance: What is the Advance Decline Ratio?
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What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...

Finance: What is speculation?
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What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on...

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Finance: What is a Yankee Bond? 36 Views


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Description:

What's a yankee bond, and does it stick a feather in its cap and call it macaroni?

Language:
English Language

Transcript

00:00

Finance allah shmoop what is a yankee bond We're safe

00:08

We're sound we're saying at least that's how we look

00:11

financially when you know the u s has compared with

00:15

most of the rest of the world that's why a

00:17

bunch of countries issue their own bonds denominated in u

00:22

s dollars you know countries like panama el salvador micronesia

00:27

and macron asia Well ours is ah hard currency and

00:30

that we don't or at least haven't historically created massive

00:34

ten percent a month inflation to deflate the value of

00:38

our own currency and well that would make it super

00:40

easy for our government to pay off its ludicrously high

00:44

death but we don't do that We respect the people

00:46

who loaned money to us including our own citizens So

00:49

we have a hard currency It just kind of stays

00:51

where it is Yes there's inflation Yes we raise the

00:53

rates a little bit here and there defended but generally

00:55

just kind of does its thing So we fight hard

00:58

to keep that trust that the rest of the world

01:00

often values more than well trust in their own governments

01:04

or at least their own government's ability to manage their

01:06

currency when they issue say argentinean bonds payable in u

01:11

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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