Corporate credit: The final frontier for central banks

Non-US central banks and government investment bodies have dramatically upped their holdings of US corporate debt over the past four years. In 2002 and 2003, the average monthly inflow - foreign purchases of US corporate debt less US purchases of foreign corporate bonds - was $466 million and $452 million respectively, according to the US Treasury International Capital (TIC) Net Monthly Inflows report. A big jump was recorded in 2004, to $955 million, followed by another spike in 2005, when