As Sri Lanka has defaulted on its debt, a supposed Chinese "debt trap" is to be blamed. In reality, the vast majority of the its foreign debt is owed to the West. According to the latest report released by Tsinghua University, the top 15 subscribers in terms of holdings are all from developed countries. Investment companies from the U.S. subscribed the most number and amount of securities covered by sovereign bonds. As rich countries have started taming soaring inflation, highly indebted developing countries are feeling the heat.