The world’s top investment funds have started piling into assets that act as stores of value – including commodities, cash, and real estate – in seeking to shield themselves against an anticipated drop in bond yields, new data from the Bank of America shows. Funds with a combined $256 billion in assets under management (AUM) in January cut their positions in bonds, banks, and insurance companies as they predicted bond yields will drop sharply this year on the back of Federal Reserve interest rate cuts, BofA’s
BAC,
-1.06%
Global Fund Manager Survey shows.
As of this month, a record 91% of fund managers surveyed expect short-term interest rates will drop over the next 12 months, up from 87% in Dec. 2023. Those figures mark the highest levels of bullish sentiment on interest rates since BofA’s surveys first started two decades ago in 2001.
A record 91% of fund managers now exp …
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BAC,
-1.06%
Global Fund Manager Survey shows.
As of this month, a record 91% of fund managers surveyed expect short-term interest rates will drop over the next 12 months, up from 87% in Dec. 2023. Those figures mark the highest levels of bullish sentiment on interest rates since BofA’s surveys first started two decades ago in 2001.
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