Definition of Tuna Bond

Financial Terms Beginning with T

What is a Tuna Bond

A tuna bond was a debt-security, created in 2013, to purchase a fleet of tuna ships for 2 Mozambique state-owned fishing companies, one of which was Ematum. The $1 billion in asset-backed loans were provided by Credit Suisse.

The tuna bond issuance ended up becoming a corruption scandal in Mozambique where Credit Suisse paid a significant fine for their involvement and was forced to write off a large part of the debt owed by Mozambique. Additionally, several individuals in Mozambique faced corruption and money laundering charges.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Collateralized Debt Obligation (CDO)

Credit Risk

Market Risk

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