According to Jinse Finance, analysts from Bank of America stated in a report that in 2024, more funds will flow into investment-grade bonds denominated in euros than into government bonds and stocks. Bank of America said that the support factor for this trend is that as interest rates decrease, the yield of government bonds decreases, and the market’s demand for higher yields increases. ‘As the interest rate further decreases in 2025, we believe that the funds flowing into investment-grade bonds will continue to increase and exceed the funds flowing into other risk-free assets.’
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BofA analyst: The inflow of funds into investment-grade euro bonds will continue to increase
According to Jinse Finance, analysts from Bank of America stated in a report that in 2024, more funds will flow into investment-grade bonds denominated in euros than into government bonds and stocks. Bank of America said that the support factor for this trend is that as interest rates decrease, the yield of government bonds decreases, and the market’s demand for higher yields increases. ‘As the interest rate further decreases in 2025, we believe that the funds flowing into investment-grade bonds will continue to increase and exceed the funds flowing into other risk-free assets.’