Follow The Flow: Risk-on, inflows continue

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Follow The Flow: Risk-on, inflows continue

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Follow The Flow

Risk-on, inflows continue

Inflows continue into credit, govies and EM debt 19 June 2026

Risk-on momentum continues, pushing more money into credit funds. A world of low Credit Strategy

rates vol backdrop and higher “risk-free” yields is a tailwind for strong inflows into Europe

credit. The Fixed Maturity Funds phenomenon is here to stay (see reports: The ‘retail- Ioannis Angelakis

isation’ of credit markets 18 June 2026 and Credit market liquidity: macro tools take Credit Derivatives Strategist

centre stage 10 June 2026) as the reach for quality yield persists. MLI+44 (UK)20 7996 0059

ioannis.angelakis@bofa.com

Over the past week… Barnaby Martin

High grade funds continue to register inflows for an eighth week in a row. Short- and CreditMLI (UK)Strategist

mid-term funds continue to register strong inflows, for the past six and ten weeks, +44 20 7995 0458

barnaby.martin@bofa.com

respectively. Long-term funds suffered from outflows. IG ETFs registered inflows this

week extending an eleven-week streak of inflows. MohitCredit StrategistAgarwalla

MLI (UK)

High yield funds recorded inflows over the past week, the nineth over the past ten mohit.agarwalla@bofa.com

weeks, and also the strongest over this period. Among European-domiciled funds, Euro-

focussed HY funds saw materially stronger inflows than peers last week, while also

Global-focussed and US-focussed HY funds saw inflows, but to a much smaller

magnitude. HY ETFs saw inflows this week reversing last week's outflows.

Table 1:Weekly and YTD European

Exhibit 1: Inflows continue into IG and HY funds retail flows Weekly flows, $mn

Weekly fund flows data across assets

6000 high-yield high-grade This Wk YTD

Sector Week (%) YTD (%) 4000