Investors Sold a Net Record of U.S. Corporate Debt – Repatriation of Capital Could Lead To More

Credit managers are anxiously waiting for upcoming data to reveal if Japan’s recent reduction in buying US corporate bonds is temporary or a developing trend. Rising bond yields in Japan, fueled by expectations of a shift away from its ultra-loose monetary policy, might lead Japanese investors to repatriate funds for better domestic returns. This potential shift could impact global market liquidity and increase volatility, especially as US corporate debt has seen diminishing demand from Asian investors, including those in Japan.