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For those who hope that the worst is now over, JPM has some bad news, Zero Hedge reported. In one of his latest Flows and Liquidity reports, JPM quant Nick Panigirtzoglou writes that as we approach quarter-end, the equity
rebalancing flow question is resurfacing in client conversations. The equity rally and the bond sell-off during the current quarter is naturally creating a pending rebalancing flow for multi-asset investors away from equities into bonds for pension funds and balanced mutual funds. How much of equity/bond rebalancing flow should we expect into current quarter-end? he said.
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JPM estimates around $107 billion of equity selling by balanced mutual funds globally into the end of March in order to revert to their 60:40 target allocation.