Bank of America logo

Institution

Bank of America Institutional Research

Bank of America’s latest research highlights a complex intersection of strong corporate fundamentals and emerging macro risks. While 1Q26 US investment grade earnings reached multi-year highs of 8.1%, median net leverage climbed to 2.06x driven by accelerated capex and declining cash reserves. Market sentiment remains aggressively risk-on, with fund manager cash levels dropping to 3.9% and equity overweighting reaching 50%, even as 'second-wave inflation' emerges as a primary tail risk. This optimism is tempered by technical warnings of a 'door to doom' scenario as 30-year Treasury yields exceed 5% and semiconductor concentration reaches extreme levels. Additionally, fiscal factors such as the $13 billion in tariff refunds are providing a business buffer despite increasing deficit risks. Finally, quantitative analysis suggests that 'Positive Triple Momentum' serves as a critical alpha generator, particularly for mitigating the downsides of high-risk asset classes.

103 reports available

Morning Market Tidbits thumbnail

Morning Market Tidbits

Bank of America·Jun 10, 2026

The report analyzes the May payroll data, noting that while headline numbers were inflated by temporary World Cup and seasonal factors, underlying labor demand remains solid. GDP tracking for Q2 has been revised to 2.7%.

The Flow Show thumbnail

The Flow Show

Bank of America·Jun 12, 2026

The BofA 'Flow Show' reports a 'sell' signal on the Bull & Bear indicator at 8.8 as tech inflows reach record highs. Investors are cautioned by inflationary trends reminiscent of the 1994 market environment.

Global Economic Viewpoint thumbnail

Global Economic Viewpoint

Bank of America·Jun 11, 2026

This report outlines key takeaways from the BofA London Small Talks Symposium, focusing on regional economic pressures, central bank policy, and geopolitical risks related to the ongoing Iran conflict.

LatAm Equity Strategy Flows To Know thumbnail

LatAm Equity Strategy Flows To Know

Bank of America·Jun 12, 2026

Latin American markets faced headwinds in May 2026, driven by higher US interest rates and a stronger dollar leading to outflows from EM funds. In Brazil specifically, foreign investors pulled significant capital from the B3 exchange, though Energy remained the only net-buy sector.

Trading Catalysts thumbnail

Trading Catalysts

Bank of America·Jun 8, 2026

This report outlines key trading catalysts for the week of June 8, 2026, balancing hawkish Fed risks against AI-related industry events and earnings. It provides specific thematic baskets and ETF recommendations centered on power, infrastructure, and semiconductors.

Situation Room: Oil > CPI thumbnail

Situation Room: Oil > CPI

Bank of America·Jun 11, 2026

This report provides a daily update on credit markets, noting that despite an in-line CPI print, inflationary pressures—driven by rising oil prices—remain elevated. Market expectations for Fed rate hikes have increased alongside IG bond yields.

Morning Market Tidbits

Bank of America·Jun 11, 2026

US Equity Futures Watch

Bank of America·Jun 11, 2026

High Frequency Monitor

Bank of America·Jun 9, 2026

Sign up to access 97 more reports

All reports

Page 1 of 5

About Bank of America

Visit Website

Related

EquitiesMacro Economic IndicatorsRates Govt BondsEnergyInformation Technology

Get full access

14-day trial · card required