Given high interest rates and inflation, de-risking is the order of the day among allocators, according to a survey by CoreData Research. In other words, allocators are edging away from stocks and other risk assets.

After polling 100 U.S. institutional investors in September, the London-based firm found that 44% are slowing new investments into risk assets, and 30% are reducing their exposure. Only 35% are bullish on U.S. stocks over the next three months. The S&P 500 had a bad 2022, recovered in the first half of this year, then began dipping again in August (although it has ticked up thus far this month).Instead, allocators are seeking risk-free yields: 43% have increased strategic allocations to government bonds or cash-like vehicles. That makes sense, as fixed-income yields nowadays are far above the near-zero level they inhabited before the Federal Reserve began tightening last year, up to 5.5%, the highest level on the Federal Reserve’s current federal funds rate range.

“These results show that 5% risk-free yields have completely changed the calculus for institutional investors,” said Michael Morley, U.S. research director at CoreData, in a statement.