Foreign demand for US corporate bonds rises as investors favor tech over financials, Citigroup says
Foreign demand for U.S. investment-grade corporate bonds has remained strong for 15 consecutive months, according to Citigroup, as overseas investors rotate into technology, media and telecom (TMT) debt, as well as longer maturities, while moving away from financial bonds.
Justin Tomlinson1 source
Foreign demand for U.S. investment-grade corporate bonds has remained strong for 15 consecutive months, according to Citigroup, as overseas investors rotate into technology, media and telecom (TMT) debt, as well as longer maturities, while moving away from financial bonds. This shift stands in contrast to recent concerns about rising debt levels at companies like Oracle (ORCL.N), which faced investor scrutiny over its funding plans for massive AI infrastructure expansion. "Foreign investors have rotated toward TMT and away from financials, and added more in the 15y+ maturity bucket, in line with recent trends in the primary market," Citigroup said in a note dated April 27.
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