EPFR Fund Flows
Negative yields tighten grip on fixed income universe in mid-3Q19 with mixed results for mutual fund flows
By Cameron Brandt 23 Aug 2019
Negative yields tighten grip on fixed income universe in mid-3Q19 with mixed results for mutual fund flows The second week of August saw the yield curves for two and 10-year US treasuries invert for the first time since 2007. The third week of August saw a major Danish bank offer qualified buyers a mortgage that will cost the borrower less than the face value to pay in full. With the unusual become normal in global debt markets, investors found their compasses spinning wildly going into the second half of 3Q19. As a result, they stuck to their ‘safety first’ strategy that has seen over $425 billion flow into EPFR-tracked Bond Funds so far this year while over $215 billion has flowed out of Equity Funds.