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Cash the big flow ‘winner’ of 2023 - BofA

Published 12/22/2023, 06:15 AM
Updated 12/22/2023, 06:20 AM
© Reuters. FILE PHOTO: Woman holds U.S. dollar banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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LONDON (Reuters) - Global investors put a record $1.3 trillion into cash in 2023, according to a report from Bank of America and data provider EPFR on Friday.

They also pumped a record $177 billion into U.S. Treasuries this year, though on a weekly basis the U.S. government bonds are in their third weekly outflow, the longest streak since February 2021.

Outflows were seen across the board in the week to Wednesday when investors pulled $26.1 billion out of cash, in the form of money market funds, $21.3 billion from stocks, $2.1 billion from bonds and $300 million in gold, the report found.

© Reuters. FILE PHOTO: Woman holds U.S. dollar banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Investors shed stocks at the highest weekly rate since December 2022, and recorded their largest outflow from tech stocks in 15 weeks of $700 million.

Corporate debt was one of the few asset classes that saw inflows in the latest week, with investment grade credit recording $400 million in inflows and high-yield logging $1.2 billion, the report showed.

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