High Yield Bond Flows Persistence outflows from high yield bonds could signal a lack of confidence in the underlying companies and their capacity to fulfill debt obligations, making it a crucial indicator to monitor closely. Image: BofA Global Investment Strategy
High-Yield Bonds vs. 200-Day Moving Average In search of higher returns, investors have been pursuing riskier investments through high yield bonds. While this strategy can be rewarding, it also exposes them to increased vulnerability if market conditions worsen. Image: BofA Global Investment Strategy
IG + HY Bond Fund Flows Despite the potential risks associated with investing in IG and HY bond funds, continued strong inflows to these funds indicate a positive sentiment among investors. Image: BofA Global Investment Strategy
Net % Investors Say They Are Overweight Bonds FMS investors currently have their largest overweight position in bonds since the global financial crisis, indicating their strong confidence in lower inflation and yields for the year 2024. Image: BofA Global Fund Manager Survey
IG and HY Bond Fund Flows It is common for investors to prefer investment-grade (IG) bonds over high-yield (HY) bonds when seeking lower-risk investments. Image: BofA Global Investment Strategy
Global High Yield Bond Prices High-yield bonds are often called the “canary in the coal mine”, as they are seen as a leading indicator of the health of the economy. Image: BofA Global Investment Strategy
FMS Investors – Net % Think High Grade Will Outpferform High Yield Bonds Will high yield bonds outperform IG bonds over the next 12 months? Image: BofA Global Fund Manager Survey
Net % of FMS Investors Overweight U.S. Equities vs. Bonds FMS relative positioning in stocks vs. bonds remains low. Image: BofA Global Fund Manager Survey
FMS Investors – Net % Say They Are Overweight Commodities Relative to Bonds FMS investors are most underweight commodities relative to bonds. Image: BofA Global Fund Manager Survey
World Government Bond GDP-Weighted Return Index Global government bond markets are on course for the worst year since the Marshall Plan in 1949. Image: BofA Global Investment Strategy
U.S. Yield Curve 2s10s vs. Emerging Market High Yield Junk Bond Price Is a recession looming and are peak yields imminent? Image: BofA Global Investment Strategy