According to the Bank of America Fund Manager Survey, a record 91% of investors expect lower short-term rates in the next 12 months. The Federal Reserve's Bank Term Funding Program (BTFP) has seen a significant increase in outstanding balances, reaching $147 billion. Additionally, FMS investors anticipate a stronger economy and expect small-caps to outperform large-caps over the next 12 months. Money market funds have experienced a record start to the year with $163 billion worth of inflows. Confidence in a soft economic landing is at its highest, with only 17% of investors expecting a hard landing and 41% believing the US will avoid a recession in 2024.
8 out of 10 FMS investors expect either a "soft" or "no" landing while 41% believe the US will avoid a recession in 2024. via BofA FMS https://t.co/qiJrQrIHj8
"According to the latest global fund manager survey by Bank of America, confidence in a soft economic landing, or even no landing at all, entered this year at its highest in this cycle. Only 17% expect a hard landing." --@JohnAuthers, @Opinion https://t.co/kg22y2cq30 https://t.co/FN3yqaqbE5
Money market funds have seen the best start to the year on record with +$163B worth of inflows (through the first two weeks). This is not typical ATH behavior. https://t.co/hLkEbuzJ1z
🔴 $14.1 BLN FLOWS TO BONDS IN THE WEEK TO WEDNESDAY, THE LARGEST IN ONE YEAR, $400 MLN FROM GOLD, $900 MLN FROM STOCKS, $14.2 BLN FROM CASH - BOFA CITING EPFR DATA.
🔴 LAST 12 WEEKS SAW THE BIGGEST OUTLFOW FROM CHINA ONSHORE MARKETS BY FOREIGN INVESTORS SINCE 2016 - BOFA CITING STOCK CONNECT DATA.
Use of #Fed funding tool jumps most since April to fresh record: Banks borrowed record sum of $161.5bn from Fed's Bank Term Funding Program, w/demand at $14.3bn climbing the most in 9mths as they piled into a reliable arbitrage trade just weeks ahead of its scheduled closure. https://t.co/J0ALCjbJgD
FMS investors expect small-caps to outperform large-caps over the next 12 months for the first time since June 2021. via BofA FMS https://t.co/otDEPYMaSn
“How America accidentally made a free-money machine for banks” “Since the start of Nov outstanding balances have risen from $109bn to $147bn from BTFP by the Fed.” The Fed’s BTFP should end today. #Fed https://t.co/6CxQLqEvoC
The percentage of FMS investors expecting a stronger economy in the next year is at a 12-month high. via BofA https://t.co/2fGZerdNB5
The Federal Reserve accidentally made a free-money machine for banks. It should shut it down https://t.co/kRZBS1roJx 👇
A record 91% of FMS investors expect lower short-term rates in the next 12 months. via BofA FMS https://t.co/TCnTPRtq8k