This article first appeared on GuruFocus.
Alphabet (GOOGL, Financials) raised nearly 7 billion euros in May, Visa (V, Financials), PepsiCo (PEP, Financials), Fiserv (FI, Financials) and Verizon (VZ, Financials) also tapped the market, with deals ranging from 2 billion to 3.5 billion euros.
LSEG data shows that U.S. corporations have sold a record $100 billion in euro-denominated bonds this year, up from $78 billion in all of 2024. Companies are taking advantage of decreasing expenses and moving away from the dollar.
Non-financial issuers have been behind the “reverse Yankees” trend, which has seen them sell about 50 billion euros in debt this year, a 32% increase from last year. Issuance from financial corporations almost increased to 35 billion euros.
There has been a lot of demand from investors, which has pushed the U.S. proportion in euro corporate bond ETFs up to about 19%. Analysts think that issuance will keep going as long as the currency is weak and financial conditions in Europe are good.
