💥U.S. Companies Seek Cheap Capital in Europe
In the face of an uncertain economic outlook in the United States, American companies are seeking cheaper capital in Europe. The Federal Reserve keeps interest rates high, while the European Central Bank (ECB) has reduced them, creating a unique opportunity for companies.
Giants like Verizon, FedEx, and PepsiCo have issued billions in euro-denominated bonds, taking advantage of lower borrowing costs. This strategy not only alleviates pressure on the U.S. credit market but also sets a record for debt issuance in Europe by American companies in 2025.
The shift shows how global monetary policy directly influences the financial decisions of large corporations.
