27 Feb 2015
Flows show acceleration of risk-taking – BAML
FXStreet (Barcelona) - The BofA-Merrill Lynch Team shares the fund flow data into equities and debt, noting that the riskiest assets saw the biggest inflows.
Key Quotes
“Riskiest assets see the biggest inflows: $3.9bn into EM debt, EM equity & HY bond funds, largest combined inflows in 2 years.”
“Streak of inflows to European stocks continues: big $5.5bn inflows this week; inflows over past 8 weeks heaviest since Dec08.”
“Zero rates means income-funds booming: $190bn inflows this decade vs lackluster $8bn into US govt bond funds over same period.”
“Flows show acceleration of risk-taking...financial markets not yet in danger-land...our B&B Index (flashed a contrarian "buy" in Jan) only back up to 3.6, our Global Equity Breadth Index at +3 (can range from -10 to +10), and cash in February FMS at an elevated 4.7%.”
Key Quotes
“Riskiest assets see the biggest inflows: $3.9bn into EM debt, EM equity & HY bond funds, largest combined inflows in 2 years.”
“Streak of inflows to European stocks continues: big $5.5bn inflows this week; inflows over past 8 weeks heaviest since Dec08.”
“Zero rates means income-funds booming: $190bn inflows this decade vs lackluster $8bn into US govt bond funds over same period.”
“Flows show acceleration of risk-taking...financial markets not yet in danger-land...our B&B Index (flashed a contrarian "buy" in Jan) only back up to 3.6, our Global Equity Breadth Index at +3 (can range from -10 to +10), and cash in February FMS at an elevated 4.7%.”