Reported 1 day ago
U.S. companies are increasingly swapping their dollar-denominated bonds for euros to take advantage of lower interest rates and mitigate rising funding costs amid uncertain economic conditions. This strategy, involving cross-currency swaps, allows firms to reduce their interest expenses significantly as they hedge against currency volatility tied to their overseas operations. As the Federal Reserve maintains a pause on rate cuts, demand for such financial instruments has grown, offering an appealing strategy for companies to manage their financial risks.
Source: YAHOO