Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Eurozone Companies Are Borrowing in Dollars
Episode 120 of The European Economy Podcast. Lucas and Luna examine a quiet shift in corporate finance: Eurozone companies are increasingly issuing debt in US dollars rather than euros. With the trade-weighted dollar index slipping to 120.5 and the euro holding around $1.14, the math has flipped for blue-chip firms like L'Oréal and Siemens. Lucas breaks down how dollar borrowing saves them 30 to 50 basis points on coupon payments, even after hedging back to euros. But the trend carries risks: if Hormuz disruptions push the ECB into a surprise hike, the carry trade unwinds fast. Luna…
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