Situation Room Credit Analysis Slower into bonds

Situation Room Slower into bonds

Slower into bonds 13 August 2026

Inflows to bonds were slower driven by weaker flows into HG funds and HY ETFs, while Credit Strategy flows were stable this past week ending Aug 12th. United States Cross Product Inflows moderated for US HG bond funds and ETFs, with a +$7.97bn inflow down from a Yuri Seliger +$9.18bn inflow in the prior week. That was driven by HG Funds (to +$0.28bn from Credit Strategist +$3.50bn) as expected during the second week of the month, as inflows accelerated for BofAS HG ETFs (to +$7.68bn from +$5.68bn). Inflows moderated for short-term HG (to +$1.59bn from +$3.01bn), while inflows accelerated ex. short-term (to +$6.37bn from Sohyun Marie Lee +$6.17bn). Credit Strategist BofAS Loans > HY

Inflows lightly improved for equities this past week (to +$15.77bn from +$8.47bn), while flows turned flat for HY after a large inflow the week prior (to -$0.10bn from +$3.30bn). In this report Inflows were steady for loans (to +$0.19bn from +$0.24bn) and for munis (to +$1.59bn from +$1.54bn). On the other hand, inflows moderated for global EM bonds (to Daily supply snapshot +$0.21bn from +$0.56bn). Finally, money markets reported a +$16.60bn inflow this past week, following a +$51.83bn inflow a week earlier. Daily dealer inventories update

Exhibit 1: Weekly high grade fund flows since 08/2025, $bn Daily foreign demand tracker HG ETF inflow was +$7.68bn this past week ending Aug-12 (vs +$5.68bn a week prior), and HG Funds inflow was +$0.28bn (vs +$3.50bn 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. Link to notable research 16 11 HG Funds HG ETF 12-week MA (RHS) 10 Morning Market Tidbits: AI-nflation 9

Weekly net fund flows ($bn) 12 8 US Watch: July PCE inflation tracking: 8 7 0.22% m/m core PCE print 6 5 4 4 US Rates Viewpoint: Supply & UST 3 rates: much has been priced but risks 0 2 1 remain -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 12 to 14.

Exhibit 2: Weekly equity fund flows since 08/2025, $bn Equities inflow was +$15.77bn this past week ending Aug-12 (vs +$8.47bn 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 Aug-12, YtD flows are 7% of AUM for HG, 2% for HY, 6% for loans, High yield: ETFs only has had the biggest inflows so far in 2026 as of Aug-12 and 1% for equities. at (8.3% of AUM), followed by All fixed income (6.9%). Last week (% of AUM for YTD (% AUM) weekly YTD (% of High yield: ETFs only 8.3% reporting AUM for all All fixed income 6.9% Asset class funds/ETFs) funds/ETFs) YTD ($bn) High grade: total 0.28% 6.8% 345.1 High grade: total 6.8% High grade: ex short-term 0.29% 6.8% 288.4 High grade: ex ST 6.8% High yield: total -0.03% 1.9% 8.7 Munis 6.7% High yield: ETFs only -0.27% 8.3% 9.8 Loans 5.7% Loans 0.69% 5.7% 10.2 EM 0.19% 1.8% 15.7 High yield: total 1.9% Munis 0.23% 6.7% 73.4 Money markets 1.8% All fixed income 0.30% 6.9% 576.5 EM 1.8% Money markets 0.20% 1.8% 153.6 Equities 1.2% Equities 0.08% 1.2% 342.8 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…