(BofA_ML) The Flow Show : The Bond Capitulation

>>> Asset Class Flows 
* Equities: $6.8bn outflows ($2.4bn out of ETF’s and $4.3bn out of mutual funds) 
* Bonds: $21.5bn inflows (largest since Sep’09; caveat is that inflows boosted by RIA reallocation) (Table 1) 
* Precious metals: $0.9bn inflows (largest 3w inflows since Aug’11)

>>> Equity Flows
* Europe: $4.3bn inflows (4 straight weeks) (Chart 5)
* EM: $1.0bn outflows (outflows in 11 out of past 12 weeks) (Table 2)
* US: $9.9bn outflows (5 straight weeks) ($6.2bn outflows via ETF’s)
* Japan: modest $0.4bn outflows

>>> Fixed Income Flows 
* 59 straight weeks of inflows to IG bond funds ($8.7bn) 
* $3.6bn inflows from HY bond funds (largest since Oct’13) 
* First inflows in 9 weeks to EM debt funds ($0.9bn – largest since Jun’14) 
* 30 straight weeks of outflows from bank loan funds ($0.4bn) 
* 20 straight weeks of inflows to muni funds ($0.9bn) 
* 65 straight weeks of inflows to MBS funds ($0.5bn)