medium · Debt Capital Markets
Why would an issuer choose to issue a 'Reverse Yankee' bond?
- To increase its exposure to Euro-zone inflation and local currency revenues.
- To avoid US securities regulation and the need for Rule 144A documentation.
- To capture cheaper funding by issuing in Euros and swapping back to Dollars when the cross-currency basis is favorable.
- To benefit from the higher interest rates typically found in the Euro market compared to the US.
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