Strongest week of inflows since Bundshock – BOFA Merrill Lynch

FXStreet (Mumbai) – The credit strategist team at BOFA Merrill Lynch notes the global funds flow has turned back to Europe post Greek crisis as the investors are keen to board on the European growth bus. The current week has seen the strongest inflow since the “Bundshock”.

Key Quotes

“High yield funds recorded their first inflow in seven weeks ($789mn), and high-grade flows were also positive, albeit less so ($256m). Given the significant decline in rates volatility, fixed income funds had their largest inflow in 12 weeks ($1.9bn).”

“Equities were the big story of the week however, with inflows increasing to a historical record of $6bn. ETFs contributed significantly to the inflow ($2.4bn). Since the beginning of the month, European equities have seen inflows of over $10bn, which should make this the best summer of equity inflows on record. Government bond inflows slowed to just below +$1bn, but remain in positive territory for the second consecutive week (after 6 straight weeks of outflows).”

“Flows suggest that Greece has done little to dent the European reflation story and the helping hand from ECB QE.”

The credit strategist team at BOFA Merrill Lynch notes the global funds flow has turned back to Europe post Greek crisis as the investors are keen to board on the European growth bus. The current week has seen the strongest inflow since the “Bundshock”.

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