Situation Room Slower into HG Aug 21

Inflows to HG bonds were driven by ETFs, while flows were stable for HY and loans this Credit Strategy past week ending Aug 19th. United States Cross Product Inflows moderated for US HG bond funds and ETFs, with a +$5.53bn inflow down from a Yuri Seliger +$7.97bn inflow in the prior week. That was driven by slower inflows into HG ETFs (to Credit Strategist +$4.64bn from +$7.68bn), as inflows accelerated for HG Funds (to +$0.89bn from BofAS +$0.28bn). Inflows accelerated for short-term HG (to +$1.72bn from +$1.59bn), while inflows moderated ex. short-term (to +$3.81bn from +$6.37bn). Sohyun Marie Lee Credit Strategist Into stocks BofAS Inflows lightly accelerated for equities this past week (to +$29.56bn from +$15.77bn),

while flows were again roughly flat for HY (to +$0.05bn from -$0.10bn). Inflows remained weak for loans (to +$0.21bn from +$0.19bn), while inflows moderated for In this report munis (to +$1.28bn from +$1.59bn). On the other hand, inflows accelerated for global EM bonds (to +$0.60bn from +$0.21bn). Finally, money markets reported a -$4.74bn Daily supply snapshot outflow this past week, following a +$16.60bn inflow a week earlier. Daily dealer inventories update

Daily HG fund flows Exhibit 1: Weekly high grade fund flows since 09/2025, $bn HG ETF inflow was +$4.64bn this past week ending Aug-19 (vs +$7.68bn a week prior), and HG Funds Daily foreign demand tracker inflow was +$0.89bn (vs +$0.28bn a week prior). Since 09/2025, 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 US Rates Viewpoint: UST buybacks =

Weekly net fund flows ($bn) 12 8 7 activist debt management 8 6 5 Global Fund Manager Survey: The 4 4 Noes Have It 3 0 2 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 12 to 14.

Exhibit 2: Weekly equity fund flows since 09/2025, $bn Equities inflow was +$29.56bn this past week ending Aug-19 (vs +$15.77bn a week prior). Since Sep 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-19, 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-19 and 1% for equities. at (7.8% of AUM), followed by All fixed income (7.4%). Last week (% of AUM for YTD (% AUM) weekly YTD (% of High yield: ETFs only 7.8% reporting AUM for all All fixed income 7.4% Asset class funds/ETFs) funds/ETFs) YTD ($bn) High grade: total 0.19% 7.1% 364.3 High grade: total 7.1% High grade: ex short-term 0.17% 7.1% 304.4 High grade: ex ST 7.1% High yield: total 0.02% 1.8% 8.2 Munis 6.9% High yield: ETFs only -0.14% 7.8% 9.2 Loans 5.7% Loans 0.31% 5.7% 10.2 EM 0.45% 2.1% 18.4 EM 2.1% Munis 0.18% 6.9% 75.6 High yield: total 1.8% All fixed income 0.25% 7.4% 613.1 Equities 1.3% Money markets -0.06% 1.3% 109.2 1.3% Money markets Equities 0.16% 1.3% 388.6 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 RESEARCH BofA GLOBAL RESEARCH

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