Eurobonds

An Eurobond is an international bond which is denominated in currency other than the home currency of the country or market in which it is issued. It is a collective bond issued by the 17 member countries of the Eurozone.

Because it merges the debts of euro-zone countries into a single bond, its credit rating will be much higher than that of PIIGS countries, but lower than Germany’s AAA rating.

Since more stable economies like Germany strongly oppose this idea, the creation of euro bonds is still under debate. However, many other debt-ridden countries still hope Eurobonds could solve the problem caused by the Eurozone debt crisis.