Credit Suisse Look For Smaller Month-End Rebalancing In Oct

Credit Suisse note that "pension rebalancing flows at the end of October are estimated to be smaller than past few months. With the S&P 500 up just 90bps so far this month, the outperformance relative to fixed income assets will result in around $1.3bn net selling of U.S. equities from pension funds that rebalance monthly. International equities have had mixed performances – MSCI EAFE is down 30bps MTD while MSCI Emerging Markets fared much better and is up 4.8% MTD. We currently estimate buying of $3.4bn in Developed Market equities and selling of $5.0bn in Emerging Market. Within fixed income, current projections show close to $2.9bn of buying as funds shift equity gains into bonds to get back to target levels."