easy · Debt Capital Markets rates-macro-drivers
What is the primary reason an issuer might choose to issue a 'Reverse Yankee' bond (a euro-denominated bond by a US issuer)?
- To access a deeper or more cost-effective investor base in Europe.
- To eliminate the need for a credit rating from S&P or Moody’s.
- Because euro interest rates are always higher than dollar rates.
- To avoid paying the cross-currency basis in a swap.
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