The tax for foreign bond investors is 6%, raised from 2% in early October.
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The real is attractive partly because foreign bond investors are buying Brazilian government debt.
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An example of a foreign bond play is the ten-year Singapore bond issued in July at 99.5 cents on the country's dollar.
The currency is up around 35% over the last two years, partially due to high interest rates in Brazil attracting foreign bond investors.
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Mantega has said recently that if they did not increase taxes on foreign bond investors, along with other measures, the dollar would be around BRL1.40 today.
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Mutual funds offer an easy path to diversified foreign bond exposure, and fund managers are experienced enough to go beyond government bonds into attractive corporate issues, too.
Soon thereafter, the bond offering was withdrawn from the market making it the first such foreign bond offering ever derailed on the U.S. market for primarily national security reasons.
With a compliant Fed and willing foreign bond buyers (largely in Asia), he might be able to stave off the bond market vigilantes throughout his second term, if he is lucky.
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Wall Street players would be wise to implement immediately a new national security layer of due diligence prior to agreeing to manage Russian and other foreign bond offerings to ensure that the true identity and activities of the borrowers are understood and communicated accurately in prospectuses.
But in most cases, I think I have a better chance at limiting risk (and ideally boosting returns) by sticking with open-end bond funds like DoubleLine Core Fixed Income (DLFNX), DoubleLine Total Return (DLTNX), Thompson Bond (THOPX), PIMCO Income (PONDX), and PIMCO Foreign Bond US Hedged (PFODX).
Both countries have manageable debt levels and potential for healthy economic growth, and their currencies are likely to hold their value a key consideration for foreign-bond buyers, Mr. Weisman says.
Treasury, corporate, municipal, high-yield and foreign bonds (and bond funds) can all play a role in your portfolio.
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At the end of 2011 the government turned to the IMF and the EU to obtain a new loan for foreign currency debt and bond obligations in 2012 and beyond.
In theory, the executive committee's task was to run all the group's investment-banking businesses--equities and corporate finance in London, which are Kleinwort's specialities, and bond and foreign-exchange trading, most of which is done by Dresdner in Frankfurt.
Indian banking stocks surged after Moody's unified India's foreign and local currency government bond ratings at Baa3 and left ratings of government-related issuers unchanged.
The target was designed to keep big borrowers like Brazil from defaulting on their debt service by budgeting enough money to cover bond interest to foreign investors.
With all the hysterical talk about slowing takeovers with legislation, about curbing the spread of junk bond acquisitions and foreign buying of U.S. assets, few people seem aware that our current tax code--passed by Congress and approved in general by the business community--provides a huge bounty to people whether Americans or foreigners, who want to take over companies.
One fear among bond investors is that foreign central banks may also be backing away from Treasurys.
There are several exemptions, including primary equity and bond issues, spot foreign-exchange deals and deals involving central clearing-houses.
After all, for every net foreign purchase of a share or bond there must be a net domestic sale.
Beijing also has opened the door wider for foreign investors to access the domestic bond market, though Chinese banks and mutual funds still make up the biggest chunk of buyers.
The country funds much of the deficit with foreign investments in its stock and bond markets, which authorities and analysts say could become tricky as these investments are usually short term.
They were among the first to spot a magical opportunity when in 1963 new taxes in the United States led to a collapse in foreign interest in the American international bond market.
Some small countries, like Iraq, don't have functioning treasury-bond markets but have sold foreign-currency bonds internationally, giving fund managers another avenue to invest in them.
That there is so little foreign money in Japan's government-bond market merely reduces the likelihood of panicky sell-offs.
And foreign investment, despite the billion-dollar bond, remains sluggish compared with what is going into other Crisis-hit nations.
Thompson also may tie the PNTR bill to legislation requiring greater transparency for stock and bond offerings by Chinese and other foreign government-owned enterprises.
Foreign investment flows into emerging market stocks and bond funds slowed in the week to March 7, according to EPFR Global, a fund tracking service in Cambridge, Mass.
The 10-year bond auction Tuesday attracted attention from mostly foreign investors and was heavily oversubscribed both good signs.
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