medium · Debt Capital Markets rates-macro-drivers

Why would an issuer choose to issue a 'Reverse Yankee' bond?

1. To increase its exposure to Euro-zone inflation and local currency revenues.
2. To avoid US securities regulation and the need for Rule 144A documentation.
3. To capture cheaper funding by issuing in Euros and swapping back to Dollars when the cross-currency basis is favorable.
4. To benefit from the higher interest rates typically found in the Euro market compared to the US.

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