Cookie Consent by Privacy Policies Generator website BofA: Follow The Flow: Consolidation Phase' : GoDubai.com

GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

    Share
  • Follow The Flow: Consolidation phase
  • BofA Global Research Media Relations

        
                                                                                                                                         
Dubai, United Arab Emirates, June 28, 2020: Refer to important disclosures at the end of this report (see link below). Please note, you may quote directly from this research report solely in your reporting as a member of the media; however all quotes must be cited as having come from a BofA Global Research report. All other copying, redistribution, retransmission, republication and any other unauthorized dissemination or use of the contents of the report or the link thereto are prohibited. If you are interested in interviewing an analyst, your request must be directed to Research Communications & Media Relations.

Follow The Flow

  Follow The Flow: Consolidation phase


•  Amid risk of a 'second wave', the rally in risk assets has paused.
•  Inflows into high-grade and government bond funds continued to slow for a second week.
•  The central bank driven euphoria seems to be in consolidation mode.


Inflows across risk assets slow down
Inflows into high-grade and government bond funds continued to slow for a second week. Amid risk of a 'second wave', the rally in risk assets has paused. The central bank driven euphoria seems to be in consolidation mode. Only two weeks ago, investors across Europe were adding risk at an unprecedented rate. However, the last two weeks saw a marked slowdown of inflows across credit and EM debt space. 


Over the past week…


High grade funds recorded their 12th inflow in a row, although the w-o-w pace has slowed over the last two weeks after registering record inflows in early June. Inflows into IG ETFs have followed a similar dynamic, with last week's inflow the lowest since the last week of March. 


High yield funds enjoyed another inflow, the 13th in a row, with the w-o-w pace stabilizing at around $1.5bn. Looking into the domicile breakdown (chart 13), European, global, and US-focused funds all recorded inflows, with the former underperforming.


Government bond funds recorded an inflow, the second in a row. Money market funds saw a small outflow, the first in five weeks. Fixed income funds enjoyed their 12th inflow in a row, the smallest in 11 weeks. Equity funds recorded an inflow, only partly offsetting last week's strong outflow, in a sign investors' sentiment for European risk assets remain heavily dependent on the evolution of the health situation worldwide.
Chart 1: Lack of inflation has benefitted credit & govt bond funds, while loan funds have suffered
 

Source: EPFR Global. YTD cumulative flows % of AUM

 

Global EM debt funds recorded their second weekly outflow in a row. Commodity funds recorded a strong outflow, the largest since July '13.
On the duration front, inflows were recorded across the IG curve. Front-end funds continued to enjoy inflows for the fourth week in a row whilst long-term funds outperformed as investors seek quality yield, amid record low yields and lack of inflation.
 



Posted by : GoDubai Editorial Team
Viewed 6818 times
Posted on : Sunday, June 28, 2020  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : BofA: Global Gold & Precious Metals: Gold and Gold Industry Primer – Eighth Edition
Next Story : HFZA Ready to Bring 50% of Employees Back to Offices
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Big Crown Pointer Date Calibre 403
Swiss Arabian Launches New Unisex Fragrance Line to Honor the Region's Heritage ...
Lulu Launches Campaign to Promote Local Products
The OMEGA Trésor is Enlivened With a New Malachite Dial
In limelight of a new Guinness World Record PACE Education Group
Joyalukkas Announces Biggest Sale of Year for 5 Days!
Malabar Gold & Diamonds Launches its first Artistry Concept Store in Somajiguda,...
SEHA marked Commemoration Day across its Facilities
In Commemoration of the UAE's 50th National Day Ariel, Tide, and Bonux along wi...
aswaaq Retail Celebrates UAE's 50th National Day with a Dedicated Store Fully Op...
Union Coop Pays Tribute to the Brave Martyrs on Commemoration Day 2021
Lincoln Marks the UAE's Golden Jubilee with a Unique View of the Country from 1,...
Bernhard H. Mayer celebrates the 50th year of UAE; launches limited-edition watc...
Al Maya Group Congratulate UAE Leaders for 50 Years Celebrations
Kanoo Machinery Showcases Innovative Machines, Equipment at Materials Handling O...
Patchi Celebrates The Nation's Success Story on UAE Year of the Fiftieth
‘PLANET JAPAN BY M-TEchX' to Showcase Japanese Innovations at EXPO 2020 Site
EWEC To Conduct Second Clean Energy Certificates Auction in December
14 French companies visit Expo 2020 Dubai, UAE to export Normandy Region in the ...
Hotpack Scoops four Honours at PRIME Awards 2021, MD chosen MEA Personality of t...
National flag of Kazakhstan hoisted at EXPO 2020 Dubai
Asha's at Wafi Celebrates 50 years of UAE in an authentic way!
Sunny Varkey Launches Tmrw, a new Learning Operating System (LearnOS) for Global...
Cartoon Network Middle East Study Reveals Increase in Cyberbullying During Pandemic
Al Khoory Sky Garden Hotel Opens at the Heart of historic Dubai
DHA's Social Fund Programme Receives Financial Contribution from Al Rostamani Group
UAE's Green Mobility Ambitions in View as #NOFILTERDXB Spotlights Auto Industry'...
Samsung Announces One UI 4 Update Rollout to further Enhance Galaxy Ecosystem Ex...
Angola's First Lady Empowers Senior Citizens With Project Dikota
Newborns in Dubai Hospitals Receive Gifts and Car Seats to Mark 50th UAE National Day
The Swiss Pavilion at Expo 2020 Dubai hosts “No time to Waste” Exhibition
Emirates Post Group to unveil region's first NFT stamp in commemoration of the 5...
Abu Dhabi Lights Up for Welcome Return of Mubadala World Tennis Championship
Summary of Weekly Real Estate Transactions for the Week Ending 30 November 2021.
NAMA Panel at Expo 2020 Promotes Gender Responsive Budgeting to Achieve Gender E...
Ajman University Organizes Week-Long Celebrations for 50th UAE National Day
FilMe to Feature ‘Jai Bhim' and ‘Matsya Kaand'
Euro Cup Dragon Boat Championship to make its debut Outside of Europe at Dubai's...
Belgian F&B Retail Reps. Visit Union Coop
Samsung Electronics Sold One Million Units of ‘The Frame' in 2021
Fatima bint Mohamed bin Zayed Initiative & UNHCR raise AED 263,625 for Women & ...
Dubai Police and Mohammed Bin Rashid University of Medicine and Health Sciences ...
eLife celebrates UAE National Day with free speed upgrades for customers
5 Million Flower Seedlings
Scotland Shares National Celebrations with the Rest of the World at Expo 2020 Dubai
Dubai Chamber to host Mohammed bin Rashid Al Maktoum Business Awards in December...
Team Abu Dhabi Primed for Big XCAT Title Battle After 222 Offshore Win Fujairah ...
SEHA announces operational hours for UAE National Day
UAE Adopts Largest Legislative Reform in its history
Stunning “From Desert to Mars” NFT Artwork Collection Showcasing the UAE's Succe...