A record number of U.S. companies are tapping the European bond market in a
single day: Amazon plans to sell its first sterling bond on Wednesday and Uber
is issuing its first euro bond, joined by four other U.S. issuers. U.S.
corporations, including banks, are seeking alternative funding as heavy borrowing
by mega-cap, AI-focused firms in the U.S. has crowded out other issuance and is
blamed for pushing up U.S. Treasury yields. Juan Valencia, credit strategist at
Societe Generale, said firms are pursuing any market that offers good liquidity
and that the euro market is the best alternative to the dollar. Investors warn
Europe's appeal could fade if it absorbs more mega-cap issuance and the current
valuation edge — largely because most issuance so far has been in the U.S. — may
evaporate.
