Fixed Income Outflows Almost Worst In 2 Years As Greek Saga Reaches Apex

Last week, investors pulled $3 billion out of high-grade European fixed income funds, the largest since the 2013 "Taper Tantrum," according to Ioannis Angelakis, an analyst with Bank of America Merrill Lynch.

Investors pulled money out of fixed income across the board, with high-yield funds, government bonds, short-term funds and even money market funds experiencing outflows.

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In the last eight weeks, Angelakis noted that, "fixed income funds have lost more than $17bn." Conversely, equity funds "remained in vogue" as investors poured in $3.4 billion, an 11-week high. Taking a step back, over the past six weeks, equity funds saw inflows of $11 billion, compared with outflows of $14.5 billion in fixed income funds.

One bright spot in fixed income are credit ETF funds, BofA Merrill said. Credit ETFs saw just $1 billion of outflows in the past three weeks, compared with $5 billion of inflows into equity funds.