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Seven of the ten most shorted bonds in the investment-grade market are issued by hyperscalers.
That concentration turns a single-name story into a sector-wide positioning trade, and at the centre of it sits Alphabet Inc.'s 6% AA-rated bonds maturing in 2056, which hold the top spot as the most shorted security in the investment-grade universe.
A sector tilt in an unlikely market Investment-grade credit is not a venue where short interest typically accumulates.
The rating floor and the covenant structure of the asset class make outright shorts expensive to hold and mechanically demanding to execute.
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