What is a tiger bond?

A tiger bond refers to a type of bond issued by companies or governments in emerging markets, particularly in Asia, that are considered to have high growth potential. These bonds are typically denominated in foreign currencies, such as U.S. dollars, and are aimed at attracting foreign investment. The term "tiger" is often associated with the "Asian Tigers," which include countries like South Korea, Taiwan, Hong Kong, and Singapore, known for their rapid economic growth. Tiger bonds can offer higher yields compared to bonds from more developed markets, but they also carry higher risks related to economic and political instability.