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Reverse Yankee Bonds Set Record Pace as Europe Outbids U.S.

  • Falling euro yields, deep ECB pockets offer escape hatch
  • U.S. junk bond spreads jumped 20 basis points in August
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You’re the treasurer of a U.S. company and you have $1 billion of junk bonds to sell. But buyers are getting a bit sniffy. What do you do?

Go to Europe, of course. There, you can fund at almost the same rate as the U.S. government. Demand will be such you may even have to turn buyers away.