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"The Number Is Off The Charts" - Record Outflows From Everything, Record Inflows Into Cash

• https://www.zerohedge.com, Tyler Durden

Summarizing the latest weekly EPFR data, BofA's Michael Hartnett puts it thus:

Record $108.9BN out of bonds (Monday = largest daily outflow ever at $30.2bn

Record $55.3BN out of investment grade bonds, Monday was largest daily outflows ever ($17.8bn).

Guess cash is not trash after all.

The best summary of what happened to the sudden reversal in credit flows belongs to Gregory Staples, head of fixed income at DWS Investment Management, who said that "the flows into IG have been so steady over the past eight years, that it was like the farmer coming with a daily handful of grain to feed the turkey in the back yard." Only "today what the farmer had in his hand was an axe."

"The number is off the charts, but so is the magnitude of this market correction," Dorian Garay, a portfolio manager at NN Investment Partners, said in reference to the investment-grade bond outflows.

Despite the historic turmoil, Bloomberg reports that some investment-grade companies including Walt Disney and PepsiCo managed to find windows of opportunity to issue new debt. In fact, as reported previously, many firms selling bonds and drawing down on their revolver this week were doing so to reduce their reliance on the commercial paper market, where prices have risen rapidly amid a broad market seize-up.


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