BREAKING: US investment-grade corporate bond funds posted -$7.1 billion in outflows last week, their largest weekly withdrawal since the 2020 pandemic. On Monday alone, these funds recorded -$8.2 billion in outflows, the biggest daily outflow in over 6 years. By comparison, during the 2022 bear market, weekly outflows peaked at -$6.5 billion. This comes as rising oil prices reignited inflation fears, while Alphabet's, GOOGL, higher AI spending forecast on Wednesday intensified investor concerns over ramping CapEx. Meanwhile, the investment-grade corporate bond ETF, LQD, has declined -2.8% since June 30th, to the 2nd-lowest level since September 2025, and is down -1.4% year-to-date. Investor appetite for corporate bonds is fading.(The Kobeissi Letter)