NEW YORK: Money managers, including Columbia Threadneedle, are looking closely at US mortgage backed securities (MBS) as a place to hide from high valuations in US corporate bonds and a wave of tech bond sales that could weigh on returns.

Overall US investment-grade issuance will probably top US$800bil in 2026, stripping out refinancings, a net increase of about 54% from this year, JPMorgan Chase & Co wrote last month.