Street Calls of the Week
Investing.com - Bank of America’s latest investor survey reveals that short USD positions are no longer perceived as a crowded trade, despite being the highest conviction cross-market trade for 2025.
The survey data indicates that while elevated short USD exposure exists among investors, market participants now view long risk positions as the most prominent cross-market position, according to Bank of America’s research.
Short USD remains the highest conviction cross-market trade for 2025, as demonstrated in the bank’s findings, particularly in Exhibit 7 of their report, which aligns with the observed elevated short USD exposure documented in Exhibit 39.
For duration positioning, the survey shows global benchmark investors maintaining relatively neutral positions in US and core European markets, while a modest overweight position in UK gilts has been closed.
The largest developed market off-benchmark rates views currently include underweight positions in Japanese Government Bonds (JGBs) and overweight positions in Canadian, Australian, and New Zealand rates, the Bank of America report indicates.
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