BAML Credit Investor Survey: Concerns Over China Soar

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Rupert Hargreaves
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Updated on

Bank of America Merrill Lynch’s  latest  (10/07/2015) European client Credit Investor Survey, shows that due to China/EM fears, the past week has seen the biggest risk reduction by investment-grade credit accounts since the Greek crisis in mid- 2011. Credit overweights have fallen to just 9% now, from 32% in July. Not only are crowded trades dissipating, but investors’ cash levels are now higher than average. In fact, cash is now investors’ biggest overweight. The average cash level for investment-grade investors has jumped from 4.9% to 6.2%, close to the highs of 6.5% seen in late 2011. According to BAML’s survey, this hefty cash weighting amongst investment grade clients is to help…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk