Inflows of new money into institutional credit funds have exceeded outflows by the “greatest ever margin” in the past three months, according to new research, demonstrating the rampant investor demand for exposure to new corporate and bank bonds.

In the latest credit investor survey from Bank of America Merrill Lynch, close to 60% of investors said they had seen net cash inflows into credit funds since March this year, marking a stark reversal of the cash outflows from their credit funds since June last year.