Credit Analysis Weaker into bonds and stocks

Situation Room Weaker into bonds and stocks

Weaker into bonds and stocks 23 July 2026

Inflows to bonds were weaker, while stocks reported mild outflows this past week Credit Strategy ending July 22nd. United States Cross Product Inflows slowed for US HG bond funds and ETFs, with a +$5.12bn inflow down from a Yuri Seliger +$7.42bn inflow in the prior week. That was mostly driven by slower inflows into HG Credit Strategist ETFs (to +$3.89bn from +$5.43bn) rather than HG Funds (to +$1.23bn from +$1.99bn). BofAS Inflows moderated for both short-term HG (to +$1.49bn from +$1.57bn) and ex. short- term (to +$3.63bn from +$5.84bn). Sohyun Marie Lee Credit Strategist Outflow from stocks BofAS Flows turned negative for equities this past week (to -$7.75bn from +$19.70bn), while

flows continued to be flat for HY (to +$0.05bn from +$0.10bn) and for loans (to - $0.02bn from -$0.02bn). Inflows slowed for munis (to +$0.26bn from +$1.84bn). On the In this report other hand, inflows accelerated for global EM bonds (to +$0.60bn from +$0.53bn). Finally, money markets reported a -$16.06bn outflow this past week, following a large - Daily supply snapshot $90.96bn outflow a week earlier. Daily dealer inventories update

Daily HG fund flows Exhibit 1: Weekly high grade fund flows since 08/2025, $bn HG ETF inflow was +$3.89bn this past week ending Jul-22 (vs +$5.43bn a week prior), and HG Funds inflow Daily foreign demand tracker was +$1.23bn (vs +$1.99bn a week prior). Since 08/2025, both HG Funds and ETFs, and the 12-week moving average have dipped at the end of 2024 and April 2025. Flows have rebounded since then.

16 11 Link to notable research HG Funds HG ETF 12-week MA (RHS) 10 9 Morning Market Tidbits: Turning the

Weekly net fund flows ($bn) 12 8 7 page on Section 122 tariffs 8 6 5 The Fixed Income Digest: Agg alpha: 4 4 Jul ’26, room to reduce IG & duration 3 0 2 risk 1 -4 0

Source: EPFR Global. Note: data are for US-domiciled funds only. BofA GLOBAL RESEARCH

BofA Securities does and seeks to do business with issuers covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Refer to important disclosures on page 10 to 12.

Exhibit 2: Weekly equity fund flows since 08/2025, $bn Equities inflow was -$7.75bn this past week ending Jul-22 (vs +$19.70bn a week prior). Since Aug 2025, the weekly equity flows and its 12-week moving average accelerated into Dec 2024 and has declined since then.

140 Equities 12-week MA (RHS) 30 120

Source: EPFR Global. Note: data are for US-domiciled funds only. BofA GLOBAL RESEARCH

Exhibit 3: YTD fund flows summary by asset class Exhibit 4: Year to date fund flows, % of AUM As of Jul-22, YtD flows are 7% of AUM for HG, 1% for HY, 4% for loans, All fixed income has had the biggest inflows so far in 2026 as of Jul-22 at and 1% for equities. (6.7% of AUM), followed by High grade: ex ST (6.6%). Last week (% of AUM for YTD (% AUM) weekly YTD (% of All fixed income 6.7% reporting AUM for all High grade: ex ST 6.6% Asset class funds/ETFs) funds/ETFs) YTD ($bn) High grade: total 0.18% 6.6% 335.9 High grade: total 6.6% High grade: ex short-term 0.16% 6.6% 283.2 Munis 6.2% High yield: total 0.01% 1.2% 5.6 High yield: ETFs only 6.1% High yield: ETFs only -0.15% 6.1% 7.2 Loans 4.0% Loans 0.39% 4.0% 7.1 EM 0.12% 1.7% 15.1 EM 1.7% Munis 0.04% 6.2% 68.3 High yield: total 1.2% All fixed income 0.20% 6.7% 554.5 Equities 1.1% Money markets -0.19% 1.0% 84.3 Money markets 1.0% Equities -0.04% 1.1% 308.9 Note: Last week flow as % of AUM is based on AUM for weekly reporting funds / ETFs only. YTD 0% 5% 10% flow as % of AUM is based on AUM for the full fund/ ETF universe as of December 31 2020. Global EM funds, US-domiciled funds only for other fund types. Loan results only include Open-End funds Note: Global EM funds, US-domiciled funds only for other fund types. and ETFs which primarily hold Broadly Syndicated Loans and do not include CLO ETFs. Source: EPFR Global, BofA Global Research Source: EPFR Global, BofA Global Research BofA GLOBAL…