The Big Bond Rush
Record Retail Bond Investments of €110bn in Q1 2023 Alone
EU retail investments into bonds have experienced a substantial upswing, more than doubling within a single quarter, leading to a fresh record high of €110bn in Q1 2023. The new record high is more than two times the previous peak of €53bn observed on the eve of the financial crisis in Q1 of 2007. It is also already surpassing all 2022 investments of €103bn.
Shift in Investor Preference Due to Higher Interest Rates
Interestingly, this surge in bond investments follows a period of significant outflows that spanned over a decade. This implies a notable shift in investor preferences toward bonds in an environment of higher interest rates.
