Should US Companies finance in the Euromarkets?

The article presents advice from a group of international bankers to corporate treasures who want to finance in the Euro-market. Stanislas Yassukovich, Managing Director, European Banking Company said that he does anticipate a well-sustained level of U.S. corporate borrowing in the Euro-markets throughout 1981. There is a considerable backlog of corporate bond offerings waiting in the U.S. domestic market, and a fair share of these will spill over into the market. Mohamed Younes, Chairman, Kidder Peabody International said that he expect to see U.S. corporate borrowers participate in the Eurobond market more actively during 1981 because of the very high demand for medium and long-term funds in the U.S. He also said that he recommend Eurobond financing if the rates in Europe are equal to or lower than in the U.S., or if the borrower's financing requirements are such that he would need access to more than one market to satisfy his needs. Yassukovich said that market does not attach the same importance to ratings, although the growth in institutional participation by captive insurance companies accustomed to U.S. securities analysis does make it worthwhile to consider a rating.