BofA warns that the credit party is ending as inflows turn to outflows due to soaring rates. "Rates market jitters are having a direct impact on flow strength into bond markets. Last week, government bond, money market and high-yield funds recorded outflows. While inflows into high-grade funds resumed, we are sceptical at the current juncture that this will continue in a world of a higher rates vol backdrop. We note that while rates vol declined last week, it has moved notably higher over the past couple of days. We cannot see such a development as a tailwind for flows into credit funds. Rates vol at current levels of c.90pts (for SMOVEU3M index) is not supportive for flows into riskier assets like credit vis-à-vis flows into "risk-free" proxies such as government deb." - BofA Ioannis Angelakis In a world where IG (and increasingly HY) funds half of AI capex, this is a problem.