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Bank of America Institutional Research

Bank of America’s latest research highlights a complex intersection of strong corporate fundamentals and emerging macro risks. While 1Q26 US investment grade earnings reached multi-year highs of 8.1%, median net leverage climbed to 2.06x driven by accelerated capex and declining cash reserves. Market sentiment remains aggressively risk-on, with fund manager cash levels dropping to 3.9% and equity overweighting reaching 50%, even as 'second-wave inflation' emerges as a primary tail risk. This optimism is tempered by technical warnings of a 'door to doom' scenario as 30-year Treasury yields exceed 5% and semiconductor concentration reaches extreme levels. Additionally, fiscal factors such as the $13 billion in tariff refunds are providing a business buffer despite increasing deficit risks. Finally, quantitative analysis suggests that 'Positive Triple Momentum' serves as a critical alpha generator, particularly for mitigating the downsides of high-risk asset classes.

154 reports available

The Flow Show thumbnail

The Flow Show

Bank of America·Jul 9, 2026

The report highlights extreme investor bullishness as measured by the BofA Bull & Bear Indicator, which sits at 9.5 and suggests reducing risk. Despite the 'sell' signal, market sentiment remains buoyed by a 'no landing' economic narrative and strong inflows into equities, particularly in tech and China.

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Morning Market Tidbits

Bank of America·Jun 30, 2026

The report highlights how K-shaped spending patterns, where high-income households drive significant discretionary consumption, are sustaining sticky cyclical inflation. This creates a difficult environment for the Fed to manage between demand-led reflation for the affluent and stagflation for lower-income groups.

The Flow Show thumbnail

The Flow Show

Bank of America·Jul 2, 2026

The BofA 'Flow Show' report highlights rising bearish sentiment as the Bull & Bear indicator hits 9.5, triggering a sell signal. Despite record inflows into technology, broader equity outflows and commodity weakness define current market flows.

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Global Performance Monitor

Bank of America·Jul 1, 2026

Global equities slipped 0.9% in June as concerns over higher interest rates and AI valuations offset strong underlying earnings revisions. Sector leadership shifted toward Banks, Semiconductors, and Health Care.

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Global Rates Viewpoint

Bank of America·Jun 25, 2026

BofA updates global rate forecasts to reflect a more hawkish Fed stance driven by US economic resilience. The report advocates for US front-end shorts and curve flatteners while favoring steepening positions in other G10 regions.

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Best of Breed

Bank of America·Jun 24, 2026

The BofA Global Best of Breed (BoB) report outlines the quantitative strategy's 3Q26 holdings, which are heavily weighted toward consumer stocks and specific geographic exposures like France and China. Despite recent 2Q26 underperformance, the model continues to exhibit superior long-term risk-adjusted returns versus the MSCI ACWI.

Morning Market Tidbits

Bank of America·Jun 17, 2026

Morning Market Tidbits

Bank of America·Jun 18, 2026

Besi CMD: Hybrid Bonding Inflection Accelerates; Long-Term Model Pulled Forward To 2028

Bank of America·Jun 18, 2026

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