Credit investors worldwide are piling into US corporate debt

FILE PHOTO: General view of the Marathon petroleum refinery in Carson, California, U.S., December 5, 2019. REUTERS/Mike Blake/File Photo

ASIAN and European investors are pouring money into US dollar corporate bonds, which have grown more enticing as longer-term US yields have risen and hedging costs have fallen.

A European investor can earn about 1.03% on an average US highgrade corporate bond after hedging, or around 0.8 percentage point above euro-denominated counterparts, according to data compiled by Bloomberg. That’s one of the biggest advantages for US notes since early 2017. A month ago, that gain would have been just 0.56 percentage point.