JPMorgan analysts, including Rosenbaum, recorded a record influx of foreign capital into American bonds.

UnluckyLemur · 2026-02-13T15:21:05+00:00

Foreign investors are showing unprecedented interest in the U.S. corporate bond market, with record net inflows in January. Analysts highlight stable yields and reduced currency hedging costs as key attractions, despite potential dollar fluctuations not deterring investments.

UnluckyLemur

2026-02-13 15:21:05

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Foreign investors are demonstrating unprecedented interest in the U.S. corporate bond market. According to JPMorgan Chase, the pace of acquiring debt securities of American corporations has reached its highest level in the past three years. In a report, JPMorgan analysts Nathaniel Rosenbaum and Sylvie Mantri examined in detail the factors underlying this vigorous growth in capital investments.

Record-high net inflows in January

Based on data analyzed through Jin10, the average daily net inflow of foreign capital in January amounted to $332 million. This is the highest figure since February 2023. Although activity slightly slowed toward the end of the month — with daily inflows dropping to $240 million, 59% below the previous week — the overall monthly trend remains exceptionally positive.

Rosenbaum and his colleagues noted that despite the local slowdown, the overall capital movement is directed toward increasing exposure to American debt instruments.

Factors making U.S. bonds attractive

Foreign investor demand is supported by several key factors. The stable yields of U.S. corporate bonds remain competitive in the global market. At the same time, reduced costs for hedging currency risks make investing in dollar-denominated assets more attractive to international capital.

Geopolitical factors and dollar risk

Financial circles are closely monitoring the dynamics of the U.S. currency exchange rate. A potential weakening of the dollar could trigger a large-scale withdrawal of foreign capital from U.S. assets. However, the current situation shows that such a scenario has not yet occurred. Despite fluctuations in the currency exchange rate, foreign investments in corporate bonds remain stable, indicating that the dollar’s weakness has not yet become a trigger for significant capital transfers. This suggests that major holders consider the fundamental advantages of American debt instruments sufficient to continue investing.

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