Report published September 25, 2026

Follow the Flow: Headwinds Ahead – Bank of America Weekly Flow Report

Bank of America · September 25, 2026

Escalating rates uncertainty is weighing on bond fund flows, as high-yield, sovereign, and money market funds all posted weekly outflows. While high-grade funds recorded modest net inflows, elevated rates volatility presents a clear headwind for credit inflows going forward.

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Finvaulta summarizes Bank of America's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.Rates volatility has escalated to around 90pts (SMOVEU3M index), creating significant headwinds for flows into credit and other risk assets.
2.High-grade funds returned to net inflows ($388mn) driven by mid- and long-term funds, while short-term funds snapped a six-week inflow streak.
3.High-yield funds logged their third straight week of outflows (-$340mn), led by outflows from globally-focussed European-domiciled funds.

Rates uncertainty brings outflows
Over the past week...
Flow chartbook
Weekly Flow Distributions per asset class
Weekly and Monthly flows per asset class
Weekly ETF flows
Cumulative flows (% of AUM)
HY flows by fund focus

Report data

Exhibit 1: Elevated uncertainty in rates is having a notable impact on flows into credit funds — as of September 23, 2026.

Metric	Estimate	Context
Rates Volatility (SMOVEU3M)	90.0 points	Level of interest rate volatility viewed as unsupportive for credit fund inflows
European HY Fund Flows	-340.0 USD millions	Weekly net outflows from European retail high-yield funds
European IG Fund Flows	388.0 USD millions	Weekly net inflows into European investment grade funds
Global EM Debt Fund Flows	4740.0 USD millions	Weekly net inflows extending positive run to eight consecutive weeks
Money Market Fund Flows	-3309.0 USD millions	Second consecutive week of net outflows from money market funds