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Saturday, September 20, 2025

Investors Turn to Derivatives for US Corporate Bonds As Issuers Can't Keep Up

 

Investors in US corporate bonds are earning so much money from their interest payments and reinvesting it so quickly that companies can’t keep up with the demand.

Blue-chip businesses have sold more than $1 trillion of bonds this year through August, data compiled by Bloomberg shows. Yet money managers have received even more than that in interest and principal payments, according to BNP Paribas — most of which they will pour back into the market.

https://www.bloomberg.com/news/articles/2025-09-20/credit-investors-have-so-much-cash-to-put-to-work-companies-can-t-keep-up

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