What is the Yankee market? Definition and examples

Yankee Market image 445645555The Yankee Market is the market in the United States for foreign securities, or the foreign market in the United States.

The term ‘foreign market’ refers to a market in one country where firms and people trade securities that are registered and based in another country.

Forexbite.com has the following definition of the term:

“The foreign market in the United States. Foreign market is a market in one country for trading of securities registered and based in another country.”

Yankee bonds

People trade Yankee bonds in the Yankee market. Yankee bonds are bonds that have been issued by a foreign bank or corporation, but are traded in the US. They are also priced in the US.

The foreign bank typically issues the bond in tranches (portions, slices). They are defined as portions of a bigger financing arrangement.

Yankee bonds sell slowly because US regulators have imposed strict regulations. It typically takes at least three months for the authorities to approve a Yankee bond.

Reverse Yankee market

This market refers to a market outside the US where American securities are traded, such as the Euro bond market.

Reverse Yankee bonds, for example, are traded in the Euro bond market. Reverse yankee bonds are US bonds traded outside the US.

Yankee market – non-US residents’ term

The Yankee market is also an informal term for the stock market in the US. When it has this meaning, it is usually being used by somebody who is not American talking to another non-American.

In much the same way, non-UK and non-Japanese residents often refer to the British and Japanese markets as the Bulldog and Samurai Markets respectively.

Online store selling American products

Yankee Market is the name of an online store that sells American products in the Baltic states, i.e., Estonia, Latvia, and Lithuania.

According to https://yankeemarket.store:

“We spotted the excess demand and insufficient supply of American products on Baltic and, specifically, Lithuanian markets – hence, that’s why we decided to create Yankee Market, #1 source of American products in the Baltic States.”