Reverse Yankees Are on the Rise

Euro‑denominated bonds issued by U.S. companies, known as reverse Yankees, have surged. The U.S. is now one of the largest sources of outstanding euro corporate debt. Ultralow yields and tight corporate spreads in Europe are among the factors driving the rise in reverse Yankee supply and are expected to continue. We believe this growing market sector gives investors opportunities to diversify their portfolios and take advantage of attractive valuations.