Foreign Investors Pour Into US Credit as Macro Outlook Improves

Credit investors have spent much of the year wondering when foreign demand for high-grade US corporate bonds will wane, but so far it is showing signs of strengthening as the macro outlook for the American economy improves.

During the first quarter of 2024, overseas investors poured $187 billion into US company notes, according to Torsten Slok, chief economist at Apollo Global Management. That’s a 61% jump from the same time last year.

Overseas investors may still be getting encouragement from an improving macroeconomic outlook for the US. Spending has proven resilient, and a report this week showed inflationary pressures ...