11 straight weeks of EM equity redemptions = longest outflow streak in 11 years!
- But note that EM outflows while persistent have not been deep, which explains why our EM Flow Trading Rule remains firmly in neutral territory, too soon for a contrarian “buy” signal.
- Bond funds halt 5-week outflow streak with biggest inflows in 35 weeks (Chart 2);
coincides with modest outflows from equity & commodity funds
*Asset Class Flows
- Bonds: Largest weekly inflows since May’13 (Table 1)
- Equities: small $0.4bn outflows
- Commodities: 9 straight weeks of redemptions
*Equity Flows
- EM: 11 straight weeks of outflows ($1.3bn – tied with Aug/Oct’11 as the longest
- outflow streak in 11 years) (Table 3)
- Europe: 28 straight weeks of inflows
- Japan: largest weekly inflows since May’13 ($1.7bn)
- US: $2.2bn outflows
*Fixed Income Flows
- Largest inflows to IG bond funds since May’13 ($3.0bn)
- 3 straight weeks of inflows to HY bond funds ($1.0bn)
- Largest inflows to Govie/Tsy in 18 weeks ($0.9bn)
- 81 straight weeks of inflows to floating-rate debt (Table 2)
- 34 straight weeks of outflows from MBS
- 15 straight weeks of outflows from Munis
- 15 straight weeks of outflows from EM debt; interesting that LDM actually ekes
out tiny inflows