| petite6 |
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| Jokers Wild |
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 FT: The US’s status as the world’s lowest-cost dollar borrower faces a challenge from foreign development banks as President Donald Trump’s erratic policymaking increases the appeal of alternative
04/20/26 09:35 AM
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haven assets.
The US Treasury’s status as the world’s lowest-cost dollar borrower is facing a fresh challenge from foreign development banks, as concerns over the Trump administration’s erratic policymaking increase the appeal of alternative haven assets.
Dollar bonds issued by the likes of the World Bank, the European Investment Bank and Germany’s state-owned KfW have rallied in recent months as investors look beyond US Treasuries, traditionally popular as haven assets during times of global stress.
As a result, yields on this so-called sovereign, supranational and agency (SSA) dollar debt have fallen almost into line with those on US government bonds, a trend that has continued even as the war in the Gulf has roiled markets.
“The Trump administration’s policy volatility is making investors wary of holding US assets,” said Steven Johnston, head of cash rates trading at Mizuho.
“Dollar SSAs are the golden child in this environment — they let investors stay in the US currency while minimising exposure to idiosyncratic US risk.”
https://www.ft.com/content/ad217964-bcc9-468a-868f-810e118a4fbc
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