“Standard” displacement of $ 109 billion in bond funds

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Source: London – Reuters

Weekly fund flows data from Bank of America showed today, Friday, that the sale of all assets in the market has led to a sharp decline in almost every asset class, while bond funds have recorded a record flow of $ 109 billion.

The high incidence and death of coronavirus outside China has led to massive sales in the stock market, and investors have withdrawn $ 20.7 billion of shares with the exodus of $ 20.2 billion in just one day, a record level.

On Monday, it also saw a record exit of $ 4.7 billion from emerging market bond funds, leading to a record weekly exodus of $ 18.8 billion.

The unprecedented isolation in major cities around the world and the potential economic consequences have prompted central banks and governments to announce massive stimulus measures.

Bank of America indicated that 42 interest rate cuts had been implemented since February 1, far exceeding the pace of the 36 cuts recorded after the bankruptcy of Lehman Brothers in 2008.

He added that his “bull and bear” index, which measures sentiment, gave a strong “buy” signal.



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