Spooked retail investors are exhibiting complete capitulation in their bond portfolios. They have been dumping fixed income assets, particularly munis, in record amounts.
Source: DB
And the proceeds are ending up in money market funds - while institutions are reducing their overall money market funds holdings.
$mm (source ICI)
Are US retail investors overreacting to "taper" talk? For those who like to take contrarian bets, this looks like an opportunity.
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