https://finance.yahoo.com/news/giant-us-companies-rushing-europe-110024297.html?guccounter=1
(Bloomberg) — The giants of corporate America from Pfizer Inc. (PFE) to Alphabet Inc. (GOOG, GOOGL) are borrowing in euros like never before as the anxiety triggered by President Donald Trump’s tariff threats pushes them to hunt for alternative funding avenues in case their home market freezes up.

A record number of these so-called reverse Yankee deals have been sold this year at a total value of more than €83 billion ($94 billion), up 35% on 2024, according to data compiled by Bloomberg. That’s nearly 14% of overall euro corporate issuance, the data shows.

This all comes after Trump’s tariff pronouncements sparked market mayhem in April. On Friday, Moody’s (MCO) downgraded its credit rating on the US, stripping the world’s largest economy of its last triple-A rank.

For decades the US corporate bond market has been the go-to destination for money managers. But early signs are emerging that Trump-induced dollar volatility, inflated Treasury yields and fears about the country’s debt burden are fueling a gradual reweighting toward the Old Continent. That would delight euro zone leaders desperate to bolster the bloc’s capital markets.

“The increasing depth of the European market is a massive factor,” according to Andrew Menzies, head of debt capital markets at Societe Generale SA. Chunky deals and big issuance days used to be a feature in the US, he says, but “you see it now in Europe as well, as typified by the supply in recent days being taken down relatively easily.”

The US remains by far the most liquid market, with nearly $7.5 trillion of bonds in Bloomberg’s main index of blue-chip US company debt, and Europe is the next biggest player with €2.85 trillion of bonds. But recent gains by the euro against the dollar are adding to the bullishness.

US companies now account for more than a fifth of a Bloomberg index of euro corporate bonds. While this isn’t unprecedented — a negative deposit rate in Europe attracted many reverse Yankees in the easy money era — the percentage has increased since the start of the year to 21.9%.

“You cannot be faulted as a chief financial officer or treasurer to be accessing euros right now,” says Fabianna Del Canto, co-head of EMEA capital markets at Mitsubishi UFJ Financial Group Inc. “It’s an attractive relative cost, with low coupons in a stable environment versus risking the unknown in the US.”

“You look at screens sometimes and you don’t know if it’s the dollar market or the euro market in terms of the names announcing transactions and the amount of cross border activity,” she adds.

Diverging interest rates — the basis for corporate borrowing costs — play a huge part in euro bonds’ attractiveness, particularly for companies with operations in Europe who don’t have to exchange back into dollars. The average yield on an index of US corporate bonds is quoted at 5.3%, and the European equivalent is 3.18%. Last month that difference was the widest in three years.

Google’s parent Alphabet raised €6.75 billion the day after raising $5 billion in the US. It will pay a coupon of 3.375% for its euro bond maturing in 2037, and 4.5% for its dollar 2035 maturity.

“Continuously high Treasury yields, driven by high US debt and deficits, means high borrowing costs for US households and companies,” says Kaspar Hense, a fixed income portfolio manager at RBC BlueBay.

With international investments into the US slowing, companies will need to find extra funding abroad. This could mean yet more reverse Yankees, Hense adds.

>Euro Bounce
All of this could become more pronounced as traders become confident that the euro’s rally has further to run, with demand for options that target a stronger euro around its highest point for the year.

The surge in inflows from the US has helped drive overall bond issuance run out of Europe to pass the €1 trillion mark in record time.

It helps that investors are able to use reverse Yankees to get access to blue-chip US corporates without having direct exposure to the dollar and Treasury movements. That’s ideal for those who expect the country to avoid a recession but still don’t want to deal with the day-to-day volatility.

Some caution that the Trump turbulence may just end up being exported to Europe. The spike in reverse Yankees means the euro credit market will likely be more sensitive to US politics, Bank of America (BAC) strategists led by Barnaby Martin wrote in a note earlier this month.

For others, they still offer some value. “I prefer reverse Yankees to US dollar-denominated bonds because I’d rather own German Bunds than US Treasuries,” says Gordon Shannon, a portfolio manager at TwentyFour Asset Management. “For now I think the govvies might be the biggest sources of volatility in corporate bonds.”

If you want a shitload of money laundered no questions asked, I recommend Deutsche Bank. If it has to be domestic, then HSBC and other major credit card banks.

>>1407774
What a coincidence, the Trump family prefers Deutsche Bank

>>1407769 (OP)
Interesting that Trump just announced fucking 50% tariffs on the EU.

Interesting that Keir Starmer signed a deal with the EU which destroyed Brexit. Before then, signing a deal with Trump in which Starmer got the better part of that deal. Years before in UK, when someone expelled flatulence, it was known as 'trumping'.
The Fart of the Deal. Donald Fart.

>>1407798
>destroyed Brexit
no
>got the better part of that deal
no
Starmer is the epitome of a stuffed shirt. An absolute cunt, if you will.

Expect 50% from 1st June, 65 % by 10th June, 29% on 16th June, 10% on 18th June Afternoon after his nap, 0% on the 19th and 137% on the 21th.

>>1407789
For what fucking purpose?

>>1407802
They haven't told him what a good boy he is lately. Top officials need to spend at least 3 weekends at a Trump golf course sucking up to him if they want to do business with the US.

>>1407807
>if they want to do business with the US.
Do they?

>>1407799
That 'Stuffed Shirt' made Conservative Boris 'Bozo the Clown' Johnson seethe and Nigel FaRAGE. Plus
>destroyed Brexit
yes
>got the better part of that deal
yes
The Special Relationship. British Aerospace Systems is one of the biggest suppliers to the Department of Defense. That UK deal with US. Trump agrees, don't bother him about it.
>>1407799 is the epitome of a retard with wrong opinions.

>>1407810
Yes if only for our agricultural production and our emerging technology sector (if not our intellectual property). 75 years of neoliberalism doesn't vanish in 4 years because of a half-assed fascist president in one country.

>>1407807
>a US company superior to Tesla heavily investing in another country: and before November 2024
In Soviet Vietnam, Trump sucks up to NVidia

>>1407800
>tRump's tariff wheel of fortune

retarD chess

>>1407813
Oh I'm sorry. The UK must be in the EU and have something more than a symbolic trade deal with the US then? Imbecile.

>>1407867
That EU deal destroys Brexit. UK also got the better part of that deal with US.
You're an imbecile. I'm not sorry.

>>1407892
nothingburger + hormone-infused nothingburger

>>1407893 is a hormonal nothingburger compared to those deals UK made with US & EU