neutral
3h agoBofA cash balance signal flashes caution for global equities
Institutional cash holdings have dropped to roughly 3.8% of assets, the lowest in a decade, according to Bank of America’s latest fund manager data. Historically, sub-4% cash has preceded modest equity pullbacks as positioning turns crowded and risk buffers thin. With policy uncertainty elevated and earnings dispersion widening, strategists warn that even small macro surprises can amplify drawdowns.
Portfolio managers are assessing hedge ratios, trimming beta exposure, and rotating toward higher-quality balance sheets to manage downside while remaining engaged in markets with selective risk.
Explore:Mutual Fund Categories
neutral
3h agoBofA cash balance signal flashes caution for global equities
Institutional cash holdings have dropped to roughly 3.8% of assets, the lowest in a decade, according to Bank of America’s latest fund manager data. Historically, sub-4% cash has preceded modest equity pullbacks as positioning turns crowded and risk buffers thin. With policy uncertainty elevated and earnings dispersion widening, strategists warn that even small macro surprises can amplify drawdowns.
Portfolio managers are assessing hedge ratios, trimming beta exposure, and rotating toward higher-quality balance sheets to manage downside while remaining engaged in markets with selective risk.
Explore:Mutual Fund Categories
Breaking
neutral
BofA cash balance signal flashes caution for global equities
about 4 hours ago
1 min read
83 words
Bank of America data shows institutional cash near 3.8%, a decade low often linked to later equity softness. Managers are nudging hedge ratios higher and tilting portfolios toward quality.
Institutional cash holdings have dropped to roughly 3.8% of assets, the lowest in a decade, according to Bank of America’s latest fund manager data. Historically, sub-4% cash has preceded modest equity pullbacks as positioning turns crowded and risk buffers thin. With policy uncertainty elevated and earnings dispersion widening, strategists warn that even small macro surprises can amplify drawdowns.
Portfolio managers are assessing hedge ratios, trimming beta exposure, and rotating toward higher-quality balance sheets to manage downside while remaining engaged in markets with selective risk.
Institutional cash holdings have dropped to roughly 3.8% of assets, the lowest in a decade, according to Bank of America’s latest fund manager data. Historically, sub-4% cash has preceded modest equity pullbacks as positioning turns crowded and risk buffers thin. With policy uncertainty elevated and earnings dispersion widening, strategists warn that even small macro surprises can amplify drawdowns.
Portfolio managers are assessing hedge ratios, trimming beta exposure, and rotating toward higher-quality balance sheets to manage downside while remaining engaged in markets with selective risk.
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markets
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markets
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positioning
risk management
global
Nov 8, 2025 • 10:36 IST