BofA: Credit crunch fears drive investors into highest bond allocation since GFC

Most pessimistic month of 2023

Fears of a credit event among banks have driven investors to their highest bond allocation since the Global Financial Crisis.

According to the Bank of America Global Fund Manager survey, the allocation to bonds is up 9 percentage points month-on-month to a net 10% overweight, the largest since March 2009.  The April survey marked the most pessimistic month among investors so far this year, as they brought down their equity allocation by 2 percentage points to a net 29% underweight. This underweight relative to bonds is now at levels not seen since the GFC. Economic growth expectations neared historic lows over the month, with 63% of investors expecting a weaker economy, the most pessimistic since December la...