medium · Debt Capital Markets rates-macro-drivers

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

1. To gain a natural-hedge exposure to Euro-zone inflation prints alongside the issuer's local-currency revenue streams across operations.
2. To sidestep US securities oversight and the burdensome Rule 144A documentation and offering regime entirely.
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 structurally higher interest rates typically prevailing in the Euro market versus the US.

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