From Pfizer to Alphabet, the titans of American capitalism are increasingly borrowing in euros — and doing so with gusto — as President Donald Trump’s tariff tantrums send shivers through domestic capital markets. In short, when Washington gets erratic, Frankfurt starts looking cosy.

According to Bloomberg data, a record-breaking wave of so-called “reverse Yankee” bond deals has already swept the eurozone this year, surpassing €83 billion in issuance, up 35% from 2024. That now accounts for nearly 14% of all euro-denominated corporate bond sales. It’s not bad for a continent once written off as the land of negative yields and regulatory doom. The sudden surge follows Trump’s tariff bombshell in April, which roiled global markets just in time for Moody’s to downgrade the United States — stripping the world’s largest economy of its last AAA rating. A perfect storm, if you will, for European bankers.

For decades, Wall Street’s corporate bond market was the place for the world’s biggest firms to raise money. Now? Between Trump’s currency spasms, climbing Treasury yields, and those pesky federal deficits, CFOs are dusting off their passports.

The math is compelling, with the euro rallying and yields widening between the US and European debts. The average yield on US corporate bonds sits at a bruising 5.3%, while Europe offers a daintier 3.18%. For European firms, issuing in euros and avoiding dollar conversion is suddenly a no-brainer.

Google’s parent company, Alphabet, recently raised €6.75 billion in Europe right after a $5 billion issue stateside. The reward? A 3.375% coupon in euros maturing 2037 versus 4.5% for its 2035-dollar bond. Same firm, different continent, better deal.

Reverse Yankees now make up more than a fifth of Bloomberg’s euro corporate bond index, 21.9%, to be precise. This is not entirely new, but it is undoubtedly a marked rise from earlier this year.

Of course, the driver is relative peace in Europe, at least compared to the Fed’s mood swings and the US’s fiscal theatrics. With Moody’s downgrade still fresh and the Treasury market under siege, even Bunds are starting to look like a safe harbour.

Meanwhile, euro strength and inflows from the US have pushed European debt issuance over €1 trillion in record time — a feat that would have seemed laughable a few years ago.

However, the reverse Yankees could transmit Trump-induced turbulence across the Atlantic. As issuance climbs, euro credit could become more sensitive to erratic US fiscal and trade policy.

Still, others see value, particularly if the euro continues climbing and US fiscal credibility continues sinking.

We’re seeing a gentle exodus from Treasuries and a quiet migration toward euro debt. This isn’t just opportunistic; it’s strategic and structural.

And so, as American deficits soar, bond yields rise, and politicians remain ideologically allergic to arithmetic, corporate America’s message seems increasingly clear: When in doubt, go euro. This is new.