Yankee bond

More than $290bn of yankee bonds have been issued this year.

Indeed, Yankee bond issuance has been on the rise since the financial crisis.

Overall, European companies sold $106bn of Yankee bonds last year, according to the data provider.

Because this was such a large issue, not owning it could hurt a manager's performance compared with a benchmark index of the Yankee bond market.

It has no junk, foreign, municipals, convertibles, preferred stock or Yankee bonds.

But mortgage- and asset-backed securities and foreign issues known as Yankee bonds rose in popularity.

He said some fund managers buy many foreign issued bonds that are denominated in dollars and called Yankee bonds.

Europe’s corporate heavyweights have been particularly active Yankee bond issuers, accounting for over half the sales, due to their more challenged domestic market.

Moreover, the sale of what are known as "Yankee bonds" was the first such sale backed only by Israel.

But bankers predict that Yankee bond sales will continue to expand at a healthy clip as long as global financial markets stay turbulent.

With a $140 billion hoard of foreign exchange, China does not need the fresh hard currency this dollar-denominated issue, known as a Yankee bond, will bring.

Yet bankers say that current attractive costs of swapping dollars into euros is just one of the drivers of the Yankee bond boom.

Yankee Bonds While some some American companies are waiting, more foreign borrowers are coming to the American market.

Dollar-denominated bonds sold by non-US banks, known as Yankee bonds, underperformed by 61bp.

The fund's exposure to "other" securities, which may include municipal and convertible bonds, preferreds, and Yankee bonds, was at 5 percent in June.

Yankee bonds have accounted for 42 per cent of the total US investment grade debt issuance this year – near last year’s 44 per cent record.

Yankee bonds also benefited from investors' preoccupation with so-called event risk: the likelihood that an unfavorable surprise might depress the price of a company's existing bonds.

Yankee bonds - those offered in the American market by foreign governments or companies - totaled $48.2 billion in the first nine months, up 52 percent from a year earlier.

They have predicted an upsurge in so-called Yankee bonds, or US-dollar denominated bonds sold by non-US companies.

Foreign corporates issuing bonds in the US Dollar market are called Yankees and their bonds are Yankee bonds.

So far this year, non-US companies have sold $260bn of investment grade dollar-denominated debt, or so-called Yankee bonds, an all-time record for this period according to Dealogic.

As with most Yankee bond issuers, this Chinese company's bond did not come due for 20 years, a long-term debt obligation usually only available to the best-regarded governments and companies.

The US perpetual preferred offering follows the successful launch by LASMO on 28th May of the US$350 million yankee bonds.

In the largest dollar-denominated bond offering by a European bank to date this year, Italy's Intesa Sanpaolo last week sold $3.5bn in three and five-year Yankee bonds.

One major driver of the European Yankee bond rush is the current level of the basis swap rate, which reflects the cost for European banks of swapping euros into dollars.