Investors stick to cash amid recession worries: BofA survey

LONDON (Reuters) – Investors have been hoarding cash at a rate not seen since the immediate aftermath of the attack on the World Trade Center in Sept 2001, BofA’s April fund manager survey showed, as the coronavirus roiled global financial markets.

Results of the monthly survey of almost 200 global fund managers by BofA, showed funds’ allocation to cash jumped to 5.9% from 5.1%, suggesting a dash for cash amid recession expectations.

Allocation to global equities slumped 29 percentage points to 27% month-on-month, to the lowest since March 2009, the bottom of the 2008 global financial crisis.

Investors said U.S. Treasuries were the “most crowded” trade for the second straight month, while coronavirus “second wave” was the top risk to markets.

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