13 Feb 2015
Fund flow review: Overall flow trend is reflationary – BAML
FXStreet (Barcelona) - The BofA-Merrill Lynch Team reviews the weekly fund flows, noting that with 12 central bank cuts YTD, the overall flow trend is reflationary.
Key Quotes
“Weekly flows: bond fund inflows ($11bn) outpace equity fund inflows ($8bn) once again…no surprise given that a chunky $4.2 trillion of government debt are now yielding 0% or less .”
“But overall flow trend is reflationary… following 12 central bank rate cuts YTD, bringing total rate cuts since the Bear Stearns crisis to 610.”
“Renewed appetite for HY bonds: largest weekly inflows ($4.2bn) since Jul13, but IG still king with 60 straight wks of inflows"
“European equities the new darling: 5th consecutive week of inflows ($15bn over past 5 weeks)”
“Following outflows in 11 out of past 13 weeks, EM equity funds record largest weekly inflows ($1.6bn) since Sep14”
Key Quotes
“Weekly flows: bond fund inflows ($11bn) outpace equity fund inflows ($8bn) once again…no surprise given that a chunky $4.2 trillion of government debt are now yielding 0% or less .”
“But overall flow trend is reflationary… following 12 central bank rate cuts YTD, bringing total rate cuts since the Bear Stearns crisis to 610.”
“Renewed appetite for HY bonds: largest weekly inflows ($4.2bn) since Jul13, but IG still king with 60 straight wks of inflows"
“European equities the new darling: 5th consecutive week of inflows ($15bn over past 5 weeks)”
“Following outflows in 11 out of past 13 weeks, EM equity funds record largest weekly inflows ($1.6bn) since Sep14”