LONDON (Reuters) – Investors pumped a record $32.5 billion into corporate bond funds last week, BofA said on Friday, encouraged by the U.S. Federal Reserve’s bond buying programme and on rising optimism about economies opening-up after two months of lockdown.
The risk-on mood helped equity funds attract $6.2 billion, with Europe seeing its first inflow in eight weeks. World stocks <.MIWD00000PUS> have now recovered more than three-fourths of the losses incurred following the coronavirus outbreak.
Dumping safe-haven government bond funds, investors poured a record $20.8 billion into investment grade bonds and $10.2 billion into risky junk bonds in the week to June 3, BofA’s fund flow stats showed.
The switch to risk has led to lower cash allocation with money market funds seeing a redemption of $16.7 billion, the highest since January.
(Reporting by Thyagaraju Adinarayan; Editing by Dhara Ranasinghe)
