The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Debt markets: Yankee market steps up to the plate

While the flow of capital turns east, European corporate bond issuers are looking west – to the US capital markets – to fill funding gaps opened by the European sovereign debt crisis. The yankee bond market’s depth, its proven resilience and a new appreciation that funding options shouldn’t be taken for granted have made it increasingly important. Hamish Risk reports.

WITH 40% OF US corporate bond market issuance coming from overseas issuers so far in 2010, European borrowers, battered by a sovereign debt crisis, have found much-needed liquidity in the yankee bond markets, away from difficult markets at home. Although the migration to US capital markets is accelerating, the initial shift pre-dates the European liquidity crisis. The realization that funding diversification was no longer just a good idea but a necessity has brought an increasing number of European companies to the US public and private bond markets. As Larry Wieseneck, Barclays Capital’s head of global finance and risk solutions, explains. “The world has changed for the large cap CFO and treasurer in the past two years. It’s now prudent that you have buyers all over the world, because you just don’t know when or where the best market opportunity is going to appear, or where the next M&A deal will be, or whether events could occur that would lead to a ratings downgrade which would require a change in your capital structure. You need to make sure no single investor constituency ultimately has leverage over you.”

The US capital markets have been the most obvious gateway.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree