Investors surveyed in BofA’s global fund manager survey in December remain bullish on bonds with allocation up one percentage point on the month to net 20% overweight, the biggest overweight since March 2009.
Regarding which asset class fund managers expect to perform best in 2024, 45% said bonds.
Short-term rates will be lower over the next 12 months, according to 89% of respondents in the survey, the most on record. Also, a record 62% of investors in December expect bond yields to be lower in 12 months time.