LONDON Dec 9 Global bond funds and gold
extended their run of redemptions over the past week amid an
"exodus from yield winners", Bank of America Merrill Lynch
(BAML) said on Friday, while energy stocks saw the biggest
inflow in a year.
The BAML data, which tracks flows through Wednesday,
reported a $0.6 billion equity outflow - a surprise at a time
when world stocks hit multi-year highs - while bond funds shed
$1.2 billion and gold lost $1.7 billion.
With bonds seeing $34 billion flee in the past six weeks and
gold shedding $7 billion over four weeks, these are the most
intense redemptions since the 2013 "taper tantrum", the data
Outflows also gathered pace from emerging markets, a top
performing sector this year, with bond funds losing $2.4 billion
- their fifth straight week of outflows - while equities shed
"Yield plays", which have received a total $1.1 trillion
since 2009, were in retreat, BAML said, noting that this year's
big winners - high-grade bonds, real estate trusts and emerging
debt - had seen year-to-date inflows retrace 10 percent, 20
percent and 33 percent respectively in the past six weeks.
"A violent rotation is now morphing into a broader risk
rally as cash and bond exposure drops in favour of stocks," BAML
On equity markets, the winners were financial stocks, which
absorbed new money for the 11th straight week, while bank loans
received $1.7 billion for their largest inflow in three years
and energy stocks took $1.4 billion, the most in a year.
That comes after last week's deal between OPEC and non-OPEC
oil producers to cut output for the first time since 2008.
(Reporting by Sujata Rao; Editing by Hugh Lawson)