The Logic: Canadian investors are dumping U.S. government debt for American corporate bonds

'Karl Schamotta, chief market strategist at Corpay Cross-Border Solutions, said the move into corporate debt is a reason not to interpret Canadians’ Treasury sales as a broader loss of confidence in the U.S. If investors were pulling back because of concerns about the country’s fiscal outlook, political institutions or growth prospects, he said, they would be unlikely to move into U.S. corporate bonds, which carry many of the same currency and political risks as Treasuries, plus additional credit risk. “They are simply being choosier about where on the risk spectrum they get paid,” Schamotta said.'

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