Corporate bond investors are more selective with their funds, as their cash levels declined in November from September, according to the BofA survey.
Investment-grade investors shifted to debt maturing between five and 10 years, while high-yield investors positioned more into debt maturing in one to three years.
Some 41% of junk bond investors (compared to 24% in September) expect those rated BB to outperform, followed by B and BBB.
The combination of attractive yields and recession concerns has made investment-grade bonds a popular choice for junk bond investors.
Both high-grade and junk bond investors were underweight debt issued by companies in the industrial and telecom sectors at the time of the survey.
Persons:
BofA, Matt Tracy, Andrea Ricci
Organizations:
Bank of America, BBB, Thomson
Locations:
U.S