President Donald Trump has reportedly funneled more than $100 million into bonds since taking office in January, making bets on debt from major corporations like Meta and Home Depot as well as municipal governments and public entities. The move has raised eyebrows—not just because Trump has chosen not to place his holdings in a blind trust, as past presidents have, but also because experts suggest it may signal expectations that interest rates will soon decline.
In February, Trump poured millions into his bond strategy, including between $500,000 and $1 million each in bonds from companies such as Home Depot, T-Mobile, and United Healthcare. He also invested between $250,000 and $500,000 into Meta’s debt, according to a CNBC analysis of 690 transactions disclosed to the Office of Government Ethics since January. Beyond corporate debt, Trump has snapped up bonds issued by local governments, gas districts, water supply districts, hospital authorities, and school boards.
Bonds are often favored by investors because they provide steadier returns than stocks. Essentially, a bond acts as a loan: the investor earns interest, usually paid semiannually, and receives the original amount back once the bond matures.
What makes Trump’s approach unusual is the lack of a blind trust. Instead, his bond purchases mirror the strategy of a wealthy investor positioning for falling rates, said Russell Rhoads, a clinical associate professor of financial management at Indiana University.
Because bond prices typically rise as interest rates fall, Trump could later sell them for a profit. Corporate bonds in particular may gain value more quickly than government bonds because of their higher risk profile. Rhoads also noted that Trump’s frequent calls for the Federal Reserve to cut rates might align with his financial interests.
“You could take the way that he’s been pushing so hard for the Fed to cut rates as like a portfolio manager going on CNBC and talking positive about a stock that’s a big holding of theirs to try to get other people to buy it,” Rhoads told Fortune.
The Federal Reserve has held interest rates steady at 4.25% to 4.5% since late 2024, though many investors are eyeing its September meeting for possible cuts. Trump’s municipal bond purchases could also offer tax advantages, since the interest they generate is generally exempt from federal income taxes—and often state taxes if bought within the investor’s home state.
With equity markets trading near record highs, shifting toward bonds may be a calculated choice. “It’s just a logical portfolio management move, as opposed to, you know, something that he knows about rates that the rest of us don’t know,” Rhoads said.
Trump continues to hold ultimate authority over his investments while his sons, Donald Trump Jr. and Eric Trump, oversee daily management of the family business. According to The New Yorker, the Trump family has already reaped an estimated $3.4 billion in profits within months of his presidency, bolstered in part by cryptocurrency ventures. The president and vice president remain exempt from federal conflict-of-interest laws that apply to most government officials.
