Talking Points
* Cash is cut: High Yield & US/EU/Japan see equity inflows (Chart 1)
* Risk-on: largest equity inflows in 12 weeks; largest HY inflows in 17 weeks
* EM-dump: more EM debt & equity redemptions but no “buy” signal from EM Flow Trading Rule
Asset Class Flows
* Money-markets: $45bn redemptions = largest since Oct’13
* Equities: $13.4bn inflows
* Bonds: modest $2.6bn inflows (Table 1)
* Commodities: 15 straight weeks of redemptions
Fixed Income Flows
* 21 straight weeks of outflows from EM debt funds (tied for longest outflow streak on record)
* 7 straight weeks of outflows from TIPS funds
* First govt/tsy fund outflows in 5 weeks
* Largest inflows to HY bond funds in 17 weeks ($2.4bn)
* 9 straight weeks of inflows to IG bond funds
* 87 straight weeks of inflows to floating-rate debt (Table 2)
Equity Flows
* $1.5bn outflows from EM equity funds (17 straight weeks of outflows = longest outflow streak on record – Table 3)
* 4-week outflows from EM equities are 2.2% of AUM = missing out on a contrarian “buy” signal from our EM Flow Trading Rule (3.0% is threshold) (Chart 2)
* Europe: $4.5bn inflows (34 straight weeks of inflows)
* US: $8.3bn inflows (majority via ETF’s)
* Japan: 9 straight weeks of inflows