US corporates tap euros for cheap debt and FX hedging
Interest rate differentials and cross-currency basis drive highest reverse Yankee issuance since Covid
US corporates have flocked to the euro debt market, reversing a three-year decline in reverse Yankee issuance, as blue-chip firms take advantage of favourable funding costs and lock in cheap foreign exchange hedges on their overseas assets.
More than €52 billion-equivalent ($58 billion) of euro-denominated ‘reverse Yankee’ bonds have been issued by US corporates this year, according to data provided by Deutsche Bank. Supply is already more than 20% up on full-year 2023 and is on track to be the
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