Bond Selloff Triggers Major Portfolio Rebalancing
Recent bond market selloffs and near record stock highs are driving massive quarter end portfolio rebalancing. Analysts expect pension funds and managers to shift billions from equities into fixed income assets.
Insights:
Institutional investors across the United States executed $33B in equity sales on Wednesday to rebalance portfolios after a steep bond selloff. The quarter-end rebalancing ranks in the 98th percentile of historical estimates, surpassing 98% of comparable periods since January 2000. The adjustments highlight a widening divergence between depressed fixed income assets and equities hovering near record highs.
