US Corporate Giants Tap Euro Debt Market

Why do you work hard for Yankee Dollar when you give better options over the blessing?

This logic would explain the increase in the so -called Yanxiz, which refers to American companies that issue debt in euros. According to the data collected by the Bank of America, non -financial American companies borrowed about 40 billion euros (about 45 billion dollars) this year as of May 9. If this pace persists, the 2019 annual number of about 90 billion euros.

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There are a large number of factors that drive American companies to take advantage of debt markets in Europe, but perhaps it is important that the cost of borrowing is relatively cheaper there.

The European Central Bank reduced the interest rate to 2.25 % last month, while the Federal Reserve has maintained its target scale by 4.25 % to 4.5 %. This dynamic is clear in revenue: euro coupons less than two percentage points, on average, than the dollar coupons in corporate bonds of the degree.

Companies with blue chips that have operations in Europe may find euros -densely attractive bonds because they will not have to the euro exchange account in dollars. They can then use their savings to pay the interest and the manager.

The giants of American companies who took advantage of the credit market in Europe include this year:

• Alphabet, the parent company of Google, which raised its first European bonds ever in five segments of 6.75 billion euros last month.

• IBM, which issued a bond of 3.5 billion euros in February, is a follow -up to the Jumbo deal that was excessive in 2023. Pfizer released 3.3 billion euros in euro bonds in mid -May, and benefited from this debt market for the first time in seven years.

Clicking on the euro bond market is not a new trend – the opposite Yanxiz was also in the past year as the European Central Bank began to reduce prices in June for the first time since 2016. The new version of the new version that was seen this year was driven by companies that want to lock financing, given the uncertainty about the Trump administration’s trade policy and its impact on the markets.

Flex Continental. Companies that can show a strong appetite for their euro bonds among investors in the region, reaffirming their position with shareholders in the United States. In addition, the wealth managers of the company’s wealth are risen for the same reasons that you want to issue-income and stability.

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