Atlantic arbitrage

A bumper year for debt issuance in the US market by foreign companies has made issuers and investors alike rethink Yankee bonds. By Navroz Patel

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Foreign companies have always found US dollar-denominated fixed-income investorsuseful for augmenting and diversifying their investor base. But things have changedover the past nine months. According to the large US investment bank debt originationdesks, issuance – especially from European companies – is now muchmore opportunistic in nature.

“A significant number of international deals in the US market were driven by Europeancorporates’ desire to exploit [an] arbitrage,” says Patrick Mermagen

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