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Buyers have been closely shopping for two very totally different classes of property forward of subsequent week’s election: bonds and bitcoin . Financial institution of America credit score strategist Yuri Seliger highlighted a shift towards bond shopping for amongst fund traders over the previous week. That included greater than $6 billion going into so-called excessive grade bonds — the very best stage in eight weeks — in addition to inflows for top yield credit score. “Inflows notably accelerated for each HG and HY this previous week ending on October 30, pushed by ETFs,” Seliger stated in a be aware to purchasers. In the meantime, fairness funds really had slight internet outflows throughout the identical timeframe, in line with Financial institution of America. A take a look at the listing of the most well-liked exchange-traded funds on FactSet over the previous week reveals demand for bonds has been broad throughout classes. Funds for investment-grade company bonds, municipal bonds, mortgage backed securities, long-term Treasury bonds and excessive yield bonds are all within the high 20 funds by inflows over the previous week. That blend is notable as a result of it suggests the bond shopping for just isn’t a full risk-off transfer. The truth is, a number of the largest short-term Treasury ETFs — arguably essentially the most steady bond funds on the market — noticed outflows final week. One other signal that traders are taking up some further danger exterior of shares is an eye-popping quantity in cryptocurrency. The iShares Bitcoin Belief ETF (IBIT) has raked in additional than $2 billion of inflows over the previous week, in line with FactSet. Greater than $870 million of that got here in sooner or later, which is a report influx for the fund, in line with JPMorgan. Bitcoin ETFs as a complete have now attracted greater than $23 billion of inflows since their launch in January, in line with JPMorgan.
