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Investors flock into bonds as recession fears rise

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Bond popularity is at financial crisis levels among professional investors as they brace for slowing growth ahead and interest-rate cuts from central banks.

A net 43% of market pros see lower short-term rates over the next 12 months, compared with just a net 9% that saw higher long-term rates, according to the Bank of America Merrill Lynch Fund Manager Survey for August.

Taken together, that’s the most bullish outlook on fixed income since November 2008, as lower yields mean higher prices and capital appreciation for bondholders.

“Investors are the most bullish on rates since 2008 as trade war concerns send recession risk to an 8-year high,” Michael Hartnett, chief investment strategist,…



Source cnbc.com

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