In the U.S. funding, the name of luxury, such as discount

  28th June (IFR) - LVMH Moet Hennessy Louis Vuitton luxury goods in the world's largest and most renowned empires is not the first name that comes to mind when you think of super-cheap price.

That is, if you have the U.S. bond market, where LVMH made its debut this week, thinking of taking advantage of low prices along with 14 other non-US companies, including iconic brands such as Heineken and Danone Europe again this year.

This is an unprecedented debut of Yankee enterprise - there was only one in the first half of 2011, and eight for the whole year - and the quality of name is that it is difficult to believe that they are not in dollars bonds issued before.

Samsung, for example, began in April with a $ 1 billion annually for five years, Volkswagen International Finance, and establish prices in the entire yield curve at a time in March when it issued U.S. $ 3.35bn of 18 months, two, three and five years U.S. grades for the first time.

Other international names, foreign less known, but national champions have returned home, made the trip. CEZ, the first program in the Czech Republic, made his debut in March with $ 1 billion of 10 - and 30-year bonds, as well as China's Sinopec oil and chemical company, with $ 3 billion in five, 10 and 30 years bonds.

The savings are great, especially for European issuers, by arbitration, if the issuer sold dollars for euros.

A high level by 75 basis points on outstanding targets 2017S and 2017S 85bp on lower-rated Heinz - LVMH, for example, has spent $ 850 million five-year bonds at 95bp over Treasuries.

But the premium was a Yankee basin compared to the 25-30BP over Euribor in the dollar swap deal. In comparison, its outstanding euro-denominated trade around 60bp over mid-swaps 2018s.

Price, but the price

As such no-brainers offers virtual prices, it is not the only incentive.

"Corporate treasurers are increasingly come outside the United States to the conclusion that there is a need to have a presence on the market in the U.S. dollar," said Jim Glascott, head of the global debt capital markets with Barclays.

"This awareness continues to lead the broadcast debut, as the United States nor the companies that get into the U.S. market, so they are well positioned to access it," he said.

No coincidence that the jump occurs in the issuer's Yankee debut together with the participants, which was seen in the show diving undertook exhaustive efforts to broaden the base station.

"The composition is based on the issuer changed significantly this year," Steven Becton, Head of Capital Markets investment-grade debt at Citigroup said.

"Much of the volume, which was held by financial institutions, has been replaced by non-US companies have been. Issuance of this group more than 35% for the first half of 2012 has increased over the same period in 2011."

Output of non-US banks is booming at about 25% to about U.S. $ 69 billion in the first half of this year, according to Bank of America Merrill Lynch, compared to levels in the first six months of record in 2011.

Total Financial Institutions Group (FIG), the program is about U.S. $ 170 billion so far this year to about 29% over the same period in 2011.

At the same time the non-financial expenditure increased to U.S. $ 118.5bn Yankee so far this year - and most of which is the United Kingdom and Europe. UK and European companies have raised about 49% more this year than they did in the first half of 2011, according to Bank of America Merrill.

The outlook for the second half of the year as a whole is less emission due to the U.S. presidential elections and the debate over impending budget cuts, the U.S. government has a mandate to do if the debt brake is not extended.