REFILE-Bulls push huge flows into stocks, EM & corporate debt -BAML

From Reuters - January 12, 2018

(Removes repetition from first paragraph)

By Karin Strohecker

LONDON, Jan 12 (Reuters) - Global investors kicked off 2018 with blockbuster inflows into equities, corporate bonds and emerging market debt, Bank of America Merrill-Lynch (BAML) said, warning its key risk indicator could soon flash sell signals.

With data showing developed as well as emerging economies growing at a healthy clip, global stocks got off to a stellar start to the year, with several benchmarks breaking records in the first trading week.

Indications that central banks were moving slowly to tighten policy supported sentiment.

Second largest week ever of inflows into emerging market debt, big inflows to investment grade and high-yield bonds, second largest inflows into tech... investors double down on bull market leadership, BAML strategists wrote in a note released on Friday, dubbing the investor mood maximum bullish.

Across asset classes, the data showed that equities enjoyed the sixth biggest inflows on record, taking in $24.4 billion, of which $21.7 billion went into exchange-traded funds.

Debt funds enjoyed the largest inflows in 31 weeks with $13.7 billion.


Continue reading at Reuters »