Wave of Cash Seen Washing Into Credit as Investors Seek Duration

Cash may still be king for the moment, but after more than $1 trillion flowed into money-market funds last year as short-term rates rose, investors are trying to figure out where it goes next.

Bank of America Corp. projects a record $500 billion of flows to high-grade corporate debt in 2024, based on the current pace of inflows. Barclays Plc strategists expect $400 billion to $600 billion could move into risk assets from money-market funds over the next year, with investors likely to favor credit over equities in that shift.

Investors have been reaping the benefits of duration — bond ...