(Bloomberg) -- The world’s biggest money managers are seeking refuge in European bond markets as dealmaking by American companies and the prospect of higher borrowing costs spur U.S. borrowers to load up on debt.

Pacific Investment Management Co., which runs the world’s biggest bond fund, and BlackRock Inc., the largest asset manager, say Europe offers safer opportunities as U.S. companies from Booz Allen Hamilton Holding Corp. to Verizon Communications Inc. raise debt to finance shareholder payouts and takeovers. Europe is 12 months to 18 months behind the U.S. in ratcheting up credit risk because it’s still emerging from the sovereign debt crisis, according to Pimco.

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