LONDON (Reuters) - Investors opted to plough their funds into money market and commodity assets at the expense of bonds and fixed income last week, with corporate credit and emerging market debt taking a beating, Bank of America (N:BAC) Merrill Lynch said on Tuesday.
While money markets recorded $1.5 billion and commodities $1.2 billion of inflows in the four days to Dec. 22, exposure to equities was cut by $1.5 billion as an increase in holdings of European and Japanese securities failed to offset investors ditching U.S. and emerging market stocks, BAML said.
Bond funds, which had seen outflows in six of the past seven week, lost a further $6.4 billion over the past week, with total outflows in the past three weeks amounting to $25 billion, BAML added.
Investment grade bond funds suffered a $3.5 billion outflow, their biggest exodus in 17 weeks, the data showed.