// definition
Reverse Yankee
US corporate bond issued in a foreign currency
Short definition
A bond issued by a US company in a foreign currency, including the euro. Its funding cost depends on the reference rate, credit spread and any currency hedge. A lower coupon in another currency does not by itself establish a funding saving.
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Knowledge map
Intuition
The issue currency changes funding terms and the investor base, while the borrower remains the same company.
Related analyses
- AI debt and competition for creditEuro funding, hedging and portfolio choices.
Primary sources
- ECB, Reverse Yankee bondsDefinition and hedged versus unhedged funding costs, June 2025.