Nightmare Is Not Over As Credit Fund Outflows Continue

Credit Fund Outflows With a rate hike now in the rear view mirror, markets will look to determine if Goldman Sachs is once again correct in its rate hike predictions – the bank expects several subsequent rate hikes after it accurately predicted the December hike – or if the Fed is going to be truly “data dependent” and ease off the trigger until after the 2016 U.S. presidential election. It is in this environment that watching credit fund flow trends becomes increasingly interesting. Equity funds continued to receive inflows while long-only commodity funds saw a continued contraction as did emerging market debt funds. Government bond funds reacted positively in...