Cash funds continue to attract inflows, set for a record year. According to statistics provided by EPFR and Bank of America, global investors continued to put money into cash funds during the week leading up to Wednesday. This trend comes when rising rates on short-term debt have placed cash funds on track for record inflows this year.
According to BofA’s weekly ‘Flow Show’ report, cash funds saw inflows totaling $77.7 billion during the week ending November 8. This puts cash funds on track to receive around $1.4 trillion in inflows by the year 2023.
Following the Federal Reserve’s decision to maintain the status quo with interest rates and suggest that the tightening cycle may soon be over, BofA said that bond funds saw inflows of $11.2 billion, the highest weekly inflow seen in the past four months.
Despite the fact that Japanese equities saw their highest outflow in seven months after the Bank of Japan modified its yield curve management strategy, which sparked the selling of Japanese banks, equity funds witnessed inflows of $8.8 billion during the week.
Meanwhile, BofA said that its bull and bear measures of investor mood increased to 1.7 from 1.4. Significant capital inflows into high-yield bond funds were the primary cause of this increase.
After reaching its lowest level since November 2022, the indicator still indicates a contrarian ‘Buy’ signal, according to BofA, despite falling to its lowest level in the last week.