After nearly a year of heady gains, asset growth at U.S. loan funds ground to a halt in June amid a downshift in the leveraged loan market.
Loan fund assets grew by a thin $290 million last month, the least since a $900 million reduction in June 2016, according to Lipper and LCD. U.S. loan fund assets under management now total $154 billion. They totaled $134 billion at the beginning of the year.
The stall in growth comes as retail investors eye the asset class with deliberation. Cash flows into loan funds and ETFs in June totaled $153 million, according to Lipper weekly reporters, well off the $2.8 billion average over the prior five months. A rare occurrence of consecutive weekly withdrawals to end the month even brought the trailing-four-week average into the red to start July. The last time that number was negative was a year ago. – Staff reports
This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.