Commodity Trading Advisors (CTAs) have maintained their full investment in equities despite recent market turbulence, according to a new report from UBS released Monday.

UBS notes that while signaling is expected to weaken, the anticipated decline in realized volatilities in February should result in only moderate flow adjustments. The report indicates CTAs maintain a bias toward selling equities, but actual deleveraging would require negative price movements to trigger such action.

In the rates market, CTAs currently hold substantial short positions, measured at the 97th percentile historically. The UBS analysis shows these traders expect yields to rise in most markets except the United Kingdom and Italy, with additional selling capacity remaining in the United States, France, and Canada despite already heavy positioning.

The report reveals CTAs have reduced their U.S. dollar shorts by approximately 25% since UBS’s previous update, buying back around $40 billion primarily against G10 currencies. However, UBS forecasts this trend will reverse, with CTAs expected to sell $90-100 billion over the next two weeks, with the euro, British pound, and Swiss franc projected to receive about half of these flows.

In commodities, UBS reports that energy has returned to favor among CTAs, who are adding to long positions in this sector while maintaining substantial holdings in both precious and industrial metals.