The overall sentiment of investors towards the asset class corporate bonds is mirrored in mutual fund flows. Monthly and weekly statistics, for example, from Investment Company Institute, AIG and Trim Tabs, track the net flows into the major asset classes and their subcomponents. They also give an indication about the portion of cash held in mutual funds. The published numbers can help to explain movements in credit spreads that are not directly related to changes in the fundamental environment for credit. For example, they partly reflect risk appetite of investors. This is especially true, when looking at flows into high-yield bond funds. Major shifts in the asset allocation of institutional investors can also be observed from the data. Yet, published information on mutual fund flows tends to be behind the curve, in other words it is a lagging indicator for the activity of market participants and thus for credit spreads. But the analysis may help to spot long-term trends in the relative attractiveness of different asset classes.