Japanese investors' record net sale of $17.2bn in US corporate bonds in August raised concerns among credit managers, signaling a potential shift in the market. Rising government bond yields in Japan may prompt investors to repatriate funds, impacting global market liquidity and increasing volatility.

Meanwhile, China is also reducing its holdings of US Treasuries to the lowest level in 14 years. This could lead to higher borrowing costs for US corporations, adding pressure to an already challenging financing environment.