U.S. companies are flocking to borrow in euros, with bond sales hitting a record $100 billion this year. Google, Visa, PepsiCo, Fiserv, and Verizon have recently issued euro-denominated bonds, called “reverse Yankees”, a trend up from $78 billion in 2024. The move is seen as a positive for the euro.

Investors and bankers predict the trend of reverse Yankee bonds will continue due to lower borrowing costs, favorable currency dynamics, and diversification away from the dollar. U.S. companies find issuing bonds in euros and swapping back to dollars cost-effective. Non-financial firms have led the way in euro bond sales this year.

Alphabet, Fiserv, and Verizon are among U.S. companies raising billions through euro bond sales. Financial firms in the U.S. have also increased such issuance. Zurich-based Vontobel Asset Management and other investors are seizing the opportunity to diversify their portfolios with euro-denominated bonds from American companies.

The surge in euro-denominated bonds from U.S. companies has boosted their weight in traditional debt indices, making them hard to ignore. The iShares Core Euro Corporate Bond ETF shows the U.S. as the second-largest issuer after France. The euro’s appeal is on the rise, with expectations of further growth against the dollar.

BNP Paribas and Morgan Stanley have been involved in major euro bond sales from U.S. companies like Pfizer and IBM. U.S. firms are now able to tap debt with longer maturities in euros, offering greater flexibility. The euro’s strength and the dollar’s decline are making it an attractive choice for investors diversifying their assets.

Read more at Yahoo Finance: Analysis-From Alphabet to Visa, US giants drive euro-denominated bond surge