HALISTER1: Europe Asset Managers See Bond Inflows Double of Stocks: BofAML

Europe Asset Managers See Bond Inflows Double of Stocks: BofAML

(Bloomberg) -- European asset managers have had bond inflows double that of equities so far in 2017, despite expectations for rising yields and positive equity markets, BofAML analysts write in note.
  • Reflects client risk aversion from uncertain macro including Brexit, Europe elections, Trump, and structural trends
    • Higher bond yields are attractive for institutions seeking income and liability matching, while regulation is also supportive
  • Within bonds, high yield, investment grade and emerging market debt are preferred to government and other low-risk bonds
  • “Unless interest rates rise sharply in Europe and/or the macro outlook becomes clearer for equities, we think demand for fixed income will remain resilient”: BofAML
RELATED:
  • Feb. 17: Equity Funds See Largest Inflows in 9 Weeks, BofAML Says
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Source: BFW (Bloomberg First Word)

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