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U.S. Companies’ Euro Bonds Teeter on Negative Yields

Issuers from GE to McDonalds take advantage of low borrowing costs in eurozone.

By Sally Bakewell, Bloomberg | Updated on February 18, 2015

General Electric Co., Philip Morris International Inc. and McDonald’s Corp.’s borrowing costs are verging on negative in Europe as European Central Bank quantitative easing drives yields to record lows.

The euro securities are among the first corporate bonds sold by U.S. issuers with rates quoted at less than 0.5 percent, according to data compiled by Bloomberg. General Electric’s 700 million euros ($798 million) of 5.125 percent notes due in September reached a record-low yield of 0.079 percent on Feb. 10 and are now at 0.081 percent, the data show.

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