Nearly a quarter of a trillion dollars is set to flow from bonds to equities, a big move by big investors shifting funds to support stock markets, according to a report by FT on Saturday.
Plummeting stock markets after Russia’s invasion of Ukraine late last month will need large institutional investors to rebuild equity stakes in their portfolios.
JPMorgan Chase stated that the rebalancing, which is anticipated to take place as Q1 draws to a close at the end of this month, would shift up to $230 billion from bonds to stocks.
Nikolaos Panigirtzoglou, a strategist at JPMorgan stated that large rebalancing flows should support equity markets by the end of this month.
The rebalancing emerges as funds that target certain allocations, such as 60 percent stocks and 40 per cent bonds, revamping their equity stake before the end of quarter reporting requirements. S&P 500 down -1.30%