Foreign investors have recently engaged in the largest sell-off of U.S. corporate bonds since the COVID-19 crash, raising concerns about their outlook on the U.S. market. Despite a resumption of foreign buying in U.S. stocks, bond investors have continued to sell through mid-April, contributing to the depreciation of the U.S. dollar. Foreign ownership of U.S. financial assets is substantial, with approximately $19 trillion in equities, $7 trillion in Treasury securities, and $5 trillion in corporate bonds, representing 20% to 30% of the total market. China holds around $760 billion in U.S. government bonds directly, with an estimated additional $500 billion held indirectly through European Union countries such as Belgium. Foreign investors often act as early indicators of market trouble and may be influenced by factors such as weakening foreign currencies and stronger performance in their domestic markets. The unwinding of these foreign holdings could pose risks to U.S. financial markets.