The latest monthly survey of credit investors from Bank of America, released overnight, shows the same familiar paradox we have seen ever since the start of the year: most survey respondents are allegedly scared worried about geopolitics and a concerned that the market is a bubble, and yet at the same time, most are allocating even more assets into what may be the biggest and riskiest credit bubble of them all: junk debt.
As BofA’s Hans Mikkelsen writes, while high grade investors reduced their positioning somewhat in June “although remaining significantly overweight”, high yield investors in contrast shifted from a small underweight to a small overweight.
This post was published at Zero Hedge on Jul 18, 2017.
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