Crowded Trade in Corporate Bonds

August 9th, 2017 1:03 pm | by John Jansen |

Via Bloomberg:

Record Set; Clients Hold the Most Corporate Bonds Since 1999
2017-08-09 16:55:35.338 GMT

By Robert Elson
(Bloomberg) — Client allocations to corporate bonds jumped
to 37.1% in the latest week vs 36.9%, according to the SMR Money
Manager Survey Asset Allocation. The previous high of 37.0% was
seen in June 2017 and also in August 2016.
* The survey began at the low of 19.1% in August 1999
* “Corporate allocations have averaged 36.7% this year, ranging
from 36.2% to 37.1%,” according to SMRA’s John Canavan
* “Over the past five years, corporate allocations have averaged
34.9% of assets, ranging from 32.0% to 37.1%”
* Allocations to GSE-agency debt remains at just 7.5%, the all
time low; allocations to GSEs peaked at 24.4% in 2001

To contact the reporter on this story:
Robert Elson in New York at relson@bloomberg.net
To contact the editors responsible for this story:
Christopher DeReza at cdereza1@bloomberg.net
Rizal Tupaz

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