What Is the Yankee Market?
"Yankee market" is a shoptalk term for the stock market in the United States.
Yankee market is generally utilized by non-U.S. occupants and alludes to the shoptalk term for an American, a Yankee (or Yank), which itself is sometimes utilized as a fun loving, however sometimes derogatory, reference to U.S. residents.
- "Yankee market" is a shoptalk term for the stock market in the United States.
- Relatedly, a Yankee bond is one issued by a foreign bank or company yet traded in the United States and priced in U.S. dollars.
- A reverse Yankee market and reverse Yankee bond allude to U.S. companies participating in the Euro bond market.
Figuring out the Term Yankee Market
The term Yankee market was utilized in business shoptalk yet has become widely accepted, similar as the "bulldog market" alludes to the U.K. market and "samurai market" alludes to the market in Japan.
Relatedly, a Yankee bond is one issued by a foreign bank or company yet traded in the United States and priced in U.S. dollars.
Yankee bonds are habitually issued in tranches, defined as individual parts of a larger debt offering or financing arrangement. Tranches can differ with respect to risk levels, interest rates, and maturities.
Offerings can be very large, rising up to $1 billion. There are severe U.S. regulations for the giving of these bonds, bringing about a sluggish selling process: It can require over 90 days for a Yankee bond issue to be approved, during which time a debt-rating agency assesses the issuer's creditworthiness.
Reverse Yankee Market and Reverse Yankee Bonds
A reverse Yankee market and reverse Yankee bond allude to U.S. companies participating in the Euro bond market. It's undeniably normal to see American companies giving debt in Europe.
The reverse Yankee market is reported to have reached \u20ac380 billion.
In 2017, The Financial Times reported on the reverse Yankee market as it definite General Electric (GE) selling a \u20ac8 billion bond and gathering \u20ac22 billion of orders, a deal the Financial Times calls "one of the largest at any point deals in the single currency, showing the depth of demand for long-dated issuance from U.S. borrowers."
The article portrays purported reverse Yankee deals turning out to be progressively well known, showed by large American issuers like Pfizer and Coca-Cola raising multibillion-euro deals. In 2015, Coca-Cola raised \u20ac8.5 billion across five tranches, which at the time was the largest reverse Yankee deal. The GE sale beat that as "the fourth-largest euro corporate bond sale ever," and seemingly attempted to reinforce future interest in reverse Yankee deals by major U.S. businesses.
Allergan and Baxter International, the Financial Times reported, were instances of two companies that announced investor gatherings in Europe ahead of arranged bond sales in 2017.
Bloomberg reported that U.S. companies in 2017 borrowed 57 billion euros in Europe, compared with 42 billion euros in that equivalent period of 2016.
Companies engaged with these reverse Yankee deals included big shots, for example, Kimberly Clark, GM Financial, Nestle, AT&T, Apple, IBM, Kellogg, Procter and Gamble, Netflix, Aramark, AMC Entertainment, Levi Strauss, and American Honda.