Follow The Flow: Credit to bonds

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Follow The Flow: Credit to bonds

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Follow The Flow

Credit to bonds

Inflows into credit funds re-accelerate 03 July 2026 Corrected

Over the past week, inflows into both high-grade and high-yield funds accelerated Credit Strategy

notably. We observe that these inflows have been primarily concentrated in the front Europe

end and the belly of the credit curve. However, short-term funds recorded their largest Ioannis Angelakis

weekly inflow in 20 weeks. We expect demand for quality yield to remain strong through Credit Derivatives Strategist

July and August - traditionally robust months for fund inflows, based on patterns MLI+44 (UK)20 7996 0059

observed in 2024 and 2025 (see report: Contagion from French political uncertainty). On ioannis.angelakis@bofa.com

the flipside supply begins to moderate (see report: Carry now, convexity next, 30 June), Barnaby Martin

thus providing a tailwind for credit markets. CreditMLI (UK)Strategist

+44 20 7995 0458

barnaby.martin@bofa.comOver the past week…

High grade funds continued their stretch of inflows, now ten weeks in a row. We note Mohit Agarwalla

Credit Strategist

that the pace has accelerated once again, w-o-w, as last week’s inflow was the strongest MLI (UK)

over the past four weeks. Short- and mid-term funds benefited from strong inflows, mohit.agarwalla@bofa.com

though short-terms funds managed to outperform. Note IG mid-term funds have now

seen twelve consecutive weeks of inflows, while long-term funds recorded their third

consecutive outflow. IG ETFs also continued their inflow streak; 13 weeks in a row. Table 1:Weekly and YTD European

retail flows

High yield funds recorded their third week of consecutive inflows. Among European- Weekly fund flows data across assets