Credit Matters Podcast Ep4: From Dollars to Euros: A Dive into Global Credit Trend
By IGMShareshare
Hosts Shankar Ramakrishnan and Bruce Clark welcome Matthew Barrett, senior credit analyst, to discuss the surge in “reverse Yankee” issuance - US companies raising debt in Europe - as AI infrastructure funding drives jumbo deals and issuers seek diversification to avoid overcrowding the dollar market and rising costs.
They explain how rate differentials, a tight cross-currency basis swap (around 0–5bp), and attractive all-in Euro funding have pulled issuers across the pond, citing IBM’s lower Euro coupons and record multi-tranche trades from Amazon and Alphabet, including landmark sterling and Swiss Franc issuance.
The team also explores how Middle East-driven volatility and shifting rate-hike expectations in Europe and the UK are lifting yields and new-issue concessions, slowing supply, and making timing issuance windows harder even as demand remains strong when investors are compensated.