Waiting for QE3

Dollar pressRetail investors steered more money towards high yield debt, according to EPFR global, as the world waits for a third round of quantitative easing continues.

The data provider said investors were responding to a market rally based on expectations of more quantitative easing in the US and elsewhere that began in late July.

The week ending 22 August saw EPFR Global-tracked high yield bond funds attracted another $1.8 billion (€1.4 billion) of inflows. Overall, net flows bond funds totaled $4.9 billion, of which 61% flowed into US bond funds.

Over the same time, $847 million was pulled from equity funds.

Money market funds saw the third consecutive week of inflows, ahead of the Securities and Exchanges Commission’s decision not to vote on tougher regulations aimed at cutting the risk of future bailouts.

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