Western Europe: Eurodollars at Work

WESTERN EUROPE

In the 15 months since Washington put "voluntary" restraints on the flow of investment capital abroad, U.S. corporations have developed a vast appetite for dollars already in foreign hands. So far, 27 companies have borrowed some $525 million overseas, and this year they are consuming two-thirds of the world's long-term dollar loans beyond U.S. borders. One result: Western Europe has eclipsed Wall Street as the leading market for international bonds.

Strained Supply. The push overseas grew so strong at the end of March that it strained Europe's floating supply of dollars and...