Return of risk-on fuels worst government debt outflows since October: BAML
Reuters
Published Jan 18, 2019 05:31AM ET
Return of risk-on fuels worst government debt outflows since October: BAML
LONDON (Reuters) - Government bonds suffered the biggest weekly outflows since October last year as investors plowed money into emerging market and high-yield debt, Bank of America Merrill Lynch (NYSE:BAC) (BAML) said on Friday.
The bank's report - which is based on EPFR data and tracks fund flows from Wednesday to Wednesday - said high-yield bond fund enjoyed $2.8 billion of inflows, the biggest since April 2017, while emerging market debt added $2.5 billion. Government bond funds shed $1 billion.
Equity redemptions hit $4.8 billion over the same period, with U.S. stocks haemorrhaging $7.7 billion, BAML researchers wrote in their note to clients. Emerging market stocks saw inflows of $3.4 billion.
BAML's bull-bear indicator rose to 2.5 from 2.1, moving away from its extreme bearish reading of January 3.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.