Rising Fiscal Deficits Drive Billions Into Credit
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Investors are showing signs of pulling money out of government bonds and plowing it into US and European company debt.
If the moves persist, money managers could be shifting what for decades has been market orthodoxy: that nothing is safer than buying US government debt. But as US fiscal deficits climb, hurt by tax cuts and rising interest costs, the government may look to borrow more, and company debt may be the safer option.
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