Investors get short end of the stick with long-term US debt

New York

THE hottest craze in fixed income is at risk of overheating.

A headlong rush into higher-yielding, long-term bonds in recent years has created one of the most crowded trades in financial markets. Investors seeking relief from central banks' zero-interest-rate policies have poured into government debt due in a decade or more, swelling the amount worldwide by a record US$733 billion this year. It's more than doubled since 2009 to about US$6 trillion, data compiled by Bloomberg and Bank of America Corp shows.