Bank of America Analyst: Funds Flowing into Euro Investment Grade Bonds Will Continue to Increase
December 31: Bank of America analysts stated in a report that in 2024, funds flowing into euro investment grade bonds will exceed those flowing into government bonds and stocks. Bank of America indicated that this trend is supported by an increased demand for higher yields as interest rate cuts lead to a decline in government bond yields. "As interest rates further decline in 2025, we believe that funds flowing into investment grade bonds will continue to increase, exceeding those flowing into other 'risk-free' assets."