Title: The First “Eurobonds”:The Rothschilds and the Financing of the Holy Alliance, 1818-1822
Abstract: Abstract The term “eurobond” entered financial parlance in the 1960s to describe the dollar-denominated bearer bonds that came to be not just traded but also issued in European financial markets, principally London. Siegmund Warburg is usually credited with the creation of this new market, which flourished during the 1960s and 1970s as restrictions on bond issuance by foreign corporations in New York were tightened. How ever, the idea of issuing bonds for a government or company in a market and a currency other than the issuing entity’s dates back much further than 1963, the year of the first eurobond issue arranged by Warburg for the Italian highway authority Autostrade. Consider one typical modern definition of a eurobond: “The bonds may or may not be denominated in the currency of the issuer’s domestic jurisdiction and the bonds are sold to investors located in different countries rather than to investors in the place ofissue.” In fact, that definition could perfectly well be applied to two major bond issues that took place nearly a century and a half before the Autostrade loan. Indeed, it is not far-fetched to describe the loans issued by the Rothschild brothers for Prussia and Russia in the aftermath of the Napoleonic Wars as the first true eurobonds.
Publication Year: 2005
Publication Date: 2005-08-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 1
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