US companies are turning to Europe for cheap borrowing, selling €116.3 billion in debt this year, just shy of a record. Companies like Verizon, FedEx, and PepsiCo are taking advantage of lower borrowing costs in Europe due to the European Central Bank’s rate cutting. The trend is expected to continue.

US job growth slowed, giving the Federal Reserve room to cut rates. Despite lower US Treasury yields, borrowing in Europe remains cheaper. As the US imposes more tariffs, US companies may turn to European markets for borrowing. This shift could impact bond sales and demand for US corporate bonds.

European companies are borrowing less in dollars and more in euros, leading to a decrease in US dollar bond sales. This trend is helping keep US high-grade corporate bond spreads tight. Global demand for corporate debt remains strong, with cash flowing into credit funds.

US leveraged-loan issuance hit a record in July, with Deutsche Bank facing challenges in leveraged finance. Alternative managers see 401(k) retirement funds as next for private credit, while Chinese developer Fantasia Holdings plans a restructuring. Lazard Inc. and Sherwin-Williams Co. sold bonds in the US market.

Harley-Davidson plans to sell a stake in its finance unit, while Wall Street struggles with trading bots in the corporate bond market. A UK carpet firm seeks US distressed debt funds, EchoStar faces pressure from regulators, and Dye & Durham explores a potential sale.

Thoma Bravo’s Oliver Thym is leaving, Oaktree Capital hires executives, CoBank welcomes Aimee Evans, and Sumitomo Mitsui Banking Corp. sees the retirement of Wami Ha. Joy Kwek joins SMBC as head of capital markets in Asia Pacific. The corporate bond market continues to evolve with global economic shifts.

Read more at Yahoo Finance: For US Companies, Europe Is Hard to Resist: Credit Weekly