Bond market crash fears cause investors to hoard cash

Latest BoAML survey

Laura Dew
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Investors are holding above-average cash weightings
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Investors are holding above-average cash weightings

Investors are maintaining their cash overweight as they are fearful of a crash in global bond markets, according to the latest Bank of America Merrill Lynch fund manager survey.

The survey, which questioned 207 panellists with $586bn in assets under management between 7 to 13 July, found investors had an average cash balance of 4.9%. This was a slight dip from 5% last month but still above the ten-year average of 4.5%. Reasons noted for the above-average cash weighting were bearish views on the market and preference for cash over low-yielding assets.  Fund managers up cash weightings as market reaches inflection point The biggest worry for investors was a crash in global bond markets, which was a fear for 28% of participants followed by 27% who were fea...

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