An international bond is a bond that is sold outside the country of the borrower.

International bond investing can offer two benefits. 1) The possibility of a higher rate of return. 2) The ability to diversity investment risk.
Receiving a higher rate of return on international bonds, versus returns on U.S. bonds, is an opportunity that can definitely benefit retired investors – providing the potential of more stable returns and a hedge against a depreciating U.S. dollar.

As the global recession continues, most financial institutions are finding it difficult to raise funds.  Many firms, however, have found an unlikely haven for raising capital: Japan.  The first quarter of 2009 saw outside firms raise nearly $5 billion via Samurai bonds.  If the trend continues, it could set a record.  Samurai bonds are yen-denominated bonds that are sold to Japanese investors.  A diverse group of companies have gone to Japan so far: Deutsche Telekom, Renault, and the Commonwealth Bank of Australia.