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Weak Dollar Poses a $3.4 Trillion Question for U.S. Credit Markets

  • ‘Distinct risk’ foreigners become net sellers: Wells Fargo
  • Greenback tumble seen reducing returns on unhedged portfolios
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A key patron of U.S. corporate debt markets -- overseas investors -- may turn from friend into foe this year.

The weak dollar has whittled down returns for unhedged money managers, raising the prospect of capital flight if the greenback’s losing streak gathers pace, warn Wells Fargo & Co. strategists.