“Many multinationals are thinking of taking their US dollar debt capital structure and using cross-currency swaps to turn it into synthetic euro debt,” Amol Dhargalkar, managing director of Chatham Financial, told GTNews. “This lowers their interest expense pretty significantly. Treasurers can save 2+ points on interest per annum by synthetically doing euro debt. I would call it the ‘trade du jour’.
AFP day 2: Trump’s tax reform and synthetic euro debt
By Victoria Beckett
October 19, 2017