Market Sentiment

Flight to Quality

Definition

What is Flight to Quality?

A shift from riskier assets toward stronger credit, liquidity, or perceived safety.

Example in practice

Corporate-bond spreads widen as money moves into government securities.

Keep learning

A market environment in which investors favour higher-risk assets.

A market environment in which investors move toward perceived safety and liquidity.

An asset expected to retain or gain value during periods of market stress, though no asset is safe in all circumstances.

A contract whose value depends on an underlying asset, rate, index, or event.

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