Investors Are Dumping Stocks for Bonds as Fed Buying Begins
- Corporate bonds keep seeing inflows while money flees equities
- Arbuthnot Latham prefers credit over stocks on bear rally risk
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The Federal Reserve’s dive into corporate debt on Tuesday aligns the U.S. central bank with money managers around the world pivoting toward America Inc.’s bonds and away from its shares.
Exchange-traded funds investing in credit saw $2.4 billions of inflows in the past week, compared to outflows for equities, data compiled by Bloomberg show.