medium · Debt Capital Markets rates-macro-drivers

In a 'Reverse Yankee' issuance, why might a US-based corporate choose to issue debt in Euros even if they only need US Dollars?

1. The Eurozone bond market permits materially higher leverage ratios than the US domestic market does.
2. It removes the need for any interest-rate or currency hedging since the Euro is regarded as a more stable currency.
3. Euro-denominated bonds issued offshore are naturally exempt from all US credit-rating and disclosure requirements.
4. The all-in cost after swapping Euro proceeds back to USD may be lower due to a favorable cross-currency basis.

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