The September 2026 Global Fund Manager Survey by Bank of America highlights a shift in investor sentiment. Institutional managers, overseeing between $470 billion and $512 billion, now identify a disorderly rise in bond yields as their primary tail risk.
Specifically, 33% of respondents cited bond yields as their top concern, an increase from 27% in August. Conversely, fears regarding an AI bubble have declined, with 28% of managers ranking it as their main worry, down from 32% in the previous month.
Despite these concerns, managers have increased their net bond underweight position to -48%, the highest level since May 2022. This indicates a bet that yields will continue to rise, even as participants fear a violent spike could destabilize the financial system.
Regarding the AI sector, 79% of respondents do not anticipate cuts to hyperscaler capital expenditure in 2026, compared to 71% in the prior month. Additionally, 42% of managers see this expenditure as a potential trigger for a systemic credit event.
Global semiconductors remain the most crowded trade, according to 53% of survey participants. The data suggests a broader move toward a balanced investment stance, driven by rising bond yields, political uncertainty surrounding US midterm elections, and risks linked to AI.
