American companies will become even bigger buyers of bonds soldby their peers as negative interest rates worldwide intensify pressure on them todeploy their $4 trillion cash pile, according to Citigroup Inc.

“In their search for yield, companies are likely to increase their allocation toward one- to five-year corporatebonds rated A or higher,” said Ajay Khorana, global head ofCitigroup's financial strategy and solutions group.

During the past two years companies have purchased as much as 15percent of all new A-rated corporate bonds with a maturity of oneto five years, according to Khorana. That's more than pensionfunds, banks, or insurance companies, as treasurers search forplaces to invest record amounts of cash at a time when yields areevaporating on safer investments such as Treasuries.