After Wall Street's large banks turned a profit, they quickly launched a euro bond issuance.
Citigroup and Bank of America have chosen to first engage with European investors before entering the domestic market, marking the first large-scale fundraising for the US banking industry since announcing profits. Citigroup issued 900 million euros of benchmark subordinated bonds with an 11-year maturity and callable on Wednesday in 10 years. According to Bloomberg's data, this is a rare example of US banks issuing benchmark subordinated bonds to raise funds outside their domestic market, with very few such transactions since the global financial crisis. It is reported by sources familiar with the matter that Bank of America issued two euro bonds expiring in four and eleven years, totaling 2.75 billion euros. This year, there has been a surge in the issuance of so-called reverse yankee bonds in the European market, driven by the lower cost of euro financing, USD volatility, and concerns over trade tariffs.
Latest