BofA Merrill Lynch Fund Manager Survey Finds Investors’ Expectations of 2015 U.S. Rate Hike Are Receding
October 13 2015 - 8:30AM
Business Wire
Signs Emerge That Gloom Over China Could Be
Lifting
Investors are expressing growing skepticism that the U.S.
Federal Reserve (Fed) will raise rates this year amid fragility in
the global economy and earnings, according to the BofA Merrill
Lynch Fund Manager Survey for October.
- Fewer than half (47 percent) of
investors believe the Fed will raise rates in 2015, down from 58
percent in September.
- A net 19 percent of the panel says
global fiscal policy is too restrictive.
- Cash balances fell to 5.1 percent of
portfolios, down from 5.5 percent last month, but remain above
historic average levels.
- A growing majority of investors (net 26
percent) say that corporate operating margins will decrease in the
coming year, up from a net 18 percent.
- Short Emerging Market Equities was
named the most crowded trade in October by 23 percent of the panel,
up from 20 percent.
- China is seen as the greatest “tail
risk” by 39 percent of the panel, down from 54 percent in
September, while pessimism over Chinese equities eased.
“As investors debate the timing of a rate hike, they should be
anticipating a massive policy shift in the U.S., Europe and Japan
from QE to fiscal stimulus in 2016,” said Michael Hartnett, chief
investment strategist at BofA Merrill Lynch Global Research.
Fund Manager SurveyAn overall total of 209 panelists with US$512
billion of assets under management participated in the survey
October 2–8, 2015. A total of 164 managers, managing US$401
billion, participated in the global survey. A total of 102
managers, managing US$213 billion, participated in the regional
surveys. The survey was conducted by BofA Merrill Lynch Global
Research with the help of market research company TNS. Through its
international network in more than 50 countries, TNS provides
market information services in over 80 countries to national and
multi-national organizations. It is ranked as the fourth-largest
market information group in the world.
BofA Merrill Lynch Global ResearchThe BofA Merrill Lynch Global
Research franchise covers almost 3,400 stocks and 1,200 credits
globally and ranks in the top tier in many external surveys. Most
recently, the group was named Top Global Research Firm of 2014 by
Institutional Investor magazine; No. 1 in the 2015 Institutional
Investor All-America survey; No. 1 in the 2015 Institutional
Investor Latin America survey; No. 1 in the Institutional Investor
2015 Emerging EMEA Survey; No. 1 in the 2015 All-Europe Fixed
Income survey; No. 2 in the 2015 Institutional Investor All-Asia
survey; and No. 2 in the 2015 All-America Fixed Income survey for
the fourth consecutive year. The group was also named No. 2 in the
2014 All-China survey.
Bank of AmericaBank of America is one of the world's leading
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range
of banking, investing, asset management and other financial and
risk management products and services. The company provides
unmatched convenience in the United States, serving approximately
48 million consumer and small business relationships with
approximately 4,800 retail financial centers, approximately 16,000
ATMs, and award-winning online banking with 31 million active users
and approximately 18 million mobile users. Bank of America is among
the world's leading wealth management companies and is a global
leader in corporate and investment banking and trading across a
broad range of asset classes, serving corporations, governments,
institutions and individuals around the world. Bank of America
offers industry-leading support to approximately 3 million small
business owners through a suite of innovative, easy-to-use online
products and services. The company serves clients through
operations in all 50 states, the District of Columbia, the U.S.
Virgin Islands, Puerto Rico and more than 35 countries. Bank of
America Corporation stock (NYSE: BAC) is listed on the New York
Stock Exchange.
Bank of America Merrill Lynch is the marketing name for the
global banking and global markets businesses of Bank of America
Corporation. Lending, derivatives, and other commercial banking
activities are performed globally by banking affiliates of Bank of
America Corporation, including Bank of America, N.A., member FDIC.
Securities, strategic advisory, and other investment banking
activities are performed globally by investment banking affiliates
of Bank of America Corporation (“Investment Banking Affiliates”),
including, in the United States, Merrill Lynch, Pierce, Fenner
& Smith Incorporated, which is a registered broker-dealer and a
member of FINRA and SIPC, and, in other jurisdictions, locally
registered entities. Investment products offered by Investment
Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not
Bank Guaranteed.
Visit the Bank of America newsroom for more Bank of America
news.
www.bankofamerica.com
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151013006012/en/
Reporters May Contact:Melissa Anchan, Bank of America,
1.646.855.3152melissa.anchan@bankofamerica.comTomos Rhys Edwards,
Bank of America, +44.20.7995.2763tomos.edwards@baml.com
Bank of America (NYSE:BAC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bank of America (NYSE:BAC)
Historical Stock Chart
From Sep 2023 to Sep 2024