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In that context, SSAs are very predictable investments.

Investors also want to remain in the U.S.

dollar.

The U.S.

dollar is the world's most liquid currency, but they don't necessarily want to be in U.S.

treasuries as much anymore.

And that's where SSA bonds come in.

So we haven't really seen investors sell treasuries in order to buy SSAs.

What we've seen is that investors are no longer reinvesting their proceeds from their treasury maturities into U.S.

treasuries as they have in the past.

Well, I would say it's important to put things in context.

The rising popularity of SSAs is definitely not a threat to the dollar's safe haven status.

It is important to remember that SSAs, the total debt issuance of the highest rated issuers last year was only about $80 billion.

In comparison, U.S.

Treasury issuance was around $4.5 trillion.

That is a significant difference.

And so you are not going to get this asset class, which is still relatively niche, become a real credible alternative to U.S.

treasuries.

That said, the rise of SSAs is just one piece of a bigger puzzle that altogether tells the story of declining global confidence in U.S.

government bonds.