Capital Markets Insight: Reverse Yankees

By Peter Pears, James Taylor, Robert Flanigan, Bernd Bohr, Whitney Joseph, Serena Mussoni & Lola Adekoya on March 17, 2023

Posted in Debt Offerings, Resources

Welcome to the first edition of our Capital Markets: Insight series – our view on the important topics and trends affecting the debt capital markets.

In this briefing, we take a look at the basics of “Reverse Yankees” – when and why they might be an attractive funding choice and the documentary options for coming to market.

WHAT IS A REVERSE YANKEE?

A bond issued by a US issuer outside of the US and denominated in a currency other than US dollars (typically, euro or sterling).
Issuers tend to be, but are not exclusively, higher rated credits.
The market is large and has grown over the past 10 years, albeit not always consistently.
In the euro corporate market, US borrowers accounted for €52bn of issuance in 2021, or just over 17% of overall supply.