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US Leveraged Loan Fund Assets Grow for Third Straight Month

US loan fund assets

Loan mutual funds’ assets under management grew for the third consecutive month in May, increasing by $1.27 billion, to $112.35 billion, after increasing by $1.44 billion in April, according to LCD.

While there were modest inflows to loan mutual funds last month, market-value gains also accounted for a portion of the increase. Secondary prices continued to grind higher in May, albeit at a much slower pace than in March and April, when market-value gains were the main driver behind the increase in AUM. – Kerry Kantin

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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CLOs: DFG Investment Advisers raises $100M for New Strategic Fund

DFG Investment Advisers today announced that it has completed a $100 million first closing for a fund in anticipation of the risk-retention rules that go into effect at the end of this year for CLO managers.

DFG had over $2.5 billion in assets under management as of the end of May. Alberta Investment Management Corporation (AIMCo) announced a minority stake in the firm on behalf of its clients in January. DFG’s strategies range from corporate to structured credit assets through commingled funds, separate accounts, and CLOs.

The firm most recently closed a $406 million CLO, the Vibrant CLO IV via Goldman Sachs on June 10. — Andrew Park

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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After 3 Weeks of Inflows US Leveraged Loan Funds see $90M Cash Withdrawal

U.S. leveraged loan funds recorded a net outflow of $90 million in the week ended June 15, according to the Lipper weekly reporters only. This is the first outflow after three weeks of inflows totaling $228 million.

leveraged loan fund flows

This week’s reading was modestly influenced by flows to the ETF segment, at 17% of the total, in contrast to the recent weeks where ETFs were filling back in withdrawals from mutual funds. Last week was likewise just 22% ETF-related, but the prior week the ETF flow was positive $135 million on top of outflows of $69 million from mutual funds.

With this past week’s fresh redemption, the trailing four-week average falls into the red, at negative $75 million per week, from positive $22 million last week, and from positive $73 million two weeks ago.

Year-to-date outflows from leveraged loan funds are now $5 billion, with $5.4 billion of mutual fund withdrawals countered by $397 million on ETF inflows. A year ago at this juncture, it was mostly mutual fund outflows, at $3.3 billion, with a small outflow of $39 million from ETFs.

The change due to market conditions this past week was minimal, at negative $145 million, or essentially nil against total assets, which were $61.7 billion at the end of the observation period. ETFs represent about 10% of the total, at $6.1 billion. — Matt Fuller

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Another (Small) Cash Inflow for US Loan Funds; That’s 4 in Last 5 Weeks

U.S. leveraged loan funds recorded a net inflow of $65 million in the week ended June 1, according to the Lipper weekly reporters only. It’s almost the same as $62 million last week, and it’s the fourth net weekly inflow over the past five weeks, for an inflow of $376 million over that span.

us loan fund flows

Take note, however, that today’s reading was all ETFs, at positive $135 million, on top of outflows of $69 million from mutual funds. Last week was similar, with $66 million of ETF inflows dented by $4 million of mutual fund outflows, and two weeks ago it was a bit deeper, with mutual fund outflows of $147 million patched by $8 million of ETF inflows.

The trailing-four-week average is fairly steady, at positive $73 million, from positive $78 million last week and positive $43 million two weeks ago.

Year-to-date outflows from leveraged loan funds are now $5 billion, with an inverse of negative $5.4 billion mutual fund against positive $390 million ETF. A year ago at this juncture, it was similarly mostly mutual fund outflows, at $3.1 billion, versus a small inflow of $81 million to ETFs, for a net negative reading of approximately $3 billion.

The change due to market conditions this past week was minimal, at positive $265 million, or about positive 0.4%, against total assets, which were $61.7 billion at the end of the observation period. ETFs represented about 10% of the total, at $6.1 billion.

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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US Leveraged Loan Funds see 3rd Cash Inflow in Last 4 Weeks

U.S. leveraged loan funds recorded a net inflow of $63 million in the week ended May 25, according to Lipper. This cuts roughly in half the outflow of $139 million last week and is the third one-week inflow over the past four weeks, for an infusion of $311 million over that span.

loan fund flowsTake note, however, that today’s reading was all ETFs, at positive $67 million on top of outflows of $4 million from mutual funds. Last week was a bit deeper, with mutual fund outflows of $147 million patched by $8 million of ETF inflows.

The trailing-four-week average is fairly steady, at positive $78 million, from positive $43 million last week and positive $55 million two weeks ago.

Year-to-date outflows from leveraged loan funds are now $5 billion, with an inverse of negative $5.3 billion mutual fund against positive $255 million ETF. A year ago at this juncture, it was similarly mostly mutual fund outflows, at $3.1 billion, versus a small inflow of $83 million to ETFs, for a net negative reading of approximately $3 billion.

The change due to market conditions this past week was minimal, at positive $181 million, or about positive 0.3%, against total assets, which were $61.4 billion at the end of the observation period. ETFs represented about 10% of the total, at $6 billion. — Matt Fuller

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

 

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After 2 Weeks of Inflows, US Leveraged Loan Funds See $139M Cash Withdrawal

U.S. leveraged loan funds recorded a net outflow of $139 million in the week ended May 18, according to Lipper. This is the first outflow after two weeks of moderate inflows totaling $387 million.

Take note, however, that today’s reading was all mutual funds, at negative $147 million, filled back in barely by an $8 million inflow to ETFs. In contrast, last week’s inflow of $303 million was almost all ETF-related, at 85% of the total.

loan fund flowsThe trailing-four-week average is fairly steady, at positive $43 million, from positive $55 million last week and negative $39 million two weeks ago.

Year-to-date outflows from leveraged loan fund are now $5.1 billion, with an inverse of negative $5.3 billion mutual fund against positive $189 million ETF. A year ago at this juncture, it was similarly mostly mutual fund outflows, at $3.1 billion, versus a small inflow of $82 million to ETFs, for a net negative reading of approximately $3 billion.

The change due to market conditions this past week was essentially nil, at positive $92 million against total assets, which were $61.1 billion at the end of the observation period. ETFs represented about 10% of the total, at $5.9 billion. — Matt Fuller

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As Prices Rise in Trading Mart, US Leveraged Loan Fund Assets Grow for 2nd Straight Month

loan fund assets under management

Loan mutual funds’ assets under management continued to grow in April after expanding in March, increasing by $1.44 billion, to $111 billion.

As was the case in March, however, the driver behind the increase wasn’t a surge of demand for the asset class from retail investors, but rather a rally in the secondary loan market.

In fact, funds that report weekly to Lipper FMI actually posted a modest $503 million net outflow for the four weeks ended April 27, which was handily cancelled out by gains in the secondary, according to LCD, an offering of S&P Global Market Intelligence. – Kerry Kantin

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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Investors Pour $303M into US Leveraged Loan Funds

U.S. leveraged loan funds had a net inflow of $303 million in the week ended May 11, according to Lipper. This is the second inflow after a five-week outflow streak totaling $693 million, and it’s the largest one-week inflow in just over a year, since the week ended April 15, 2015.

US leveraged loan fund flowsTake note, however, that today’s reading is hugely ETF-related, at 85% of the inflow. While last week’s was inverse, with outflows of $42 million from mutual funds filled back in by inflows of $126 million to the exchange-traded fund market, there has been a net inflow dominated by ETFs since the week ended March 23 when the $126 million was 95% related to ETFs.

Whatever that might say about fast money, hedging strategies, and other market-timing efforts, this past week’s net inflow takes the trailing-four-week average into the black for the first time in six weeks, at positive $55 million, from negative $254 million last week and negative $126 million two weeks ago.

Year-to-date outflows from leveraged loan funds shrank a bit, to $5 billion, with an inverse of negative $5.2 billion mutual fund against positive $180 million ETF. A year ago at this juncture, it was similarly mostly mutual fund outflows, at $3.3 billion, versus a small inflow of $93 million to ETFs, for a net negative reading of approximately $3.2 billion.

The change due to market conditions this past week was essentially nothing, at positive $12 million against total assets, which were $61.2 billion at the end of the observation period. ETFs represented about 10% of the total, at $5.9 billion. — Matt Fuller

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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After 5 Weeks of Withdrawals, US Leveraged Loan Funds See $84M Cash Inflow

us loan fund flowsU.S. leveraged loan funds had a net inflow of $84 million in the week ended May 4, according to Lipper. This is the first inflow after a five-week outflow streak totaling $693 million.

Take note, however, that today’s reading is inverse, with outflows of $42 million from mutual funds filled back in by inflows of $126 million to the exchange-traded fund market. Similarly, last week’s net $75 million outflow was based on outflows of $98 million from mutual funds and inflows of $23 million to ETFs.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.3 billion, with just 1% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.4 billion, versus a small inflow of $141 million to ETFs, for a net negative reading of $3.6 billion.

The change due to market conditions this past week was barely positive, at 0.4%, with a gain of $250 million against total assets, which were $60.9 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.4 billion. — Matt Fuller

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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US CLO Issuance Hits 2016 High in April. That’s the Good News …

US CLO issuance

If you’re looking for good news in today’s structured finance market: At $4.8 billion in April, the U.S. CLO market just completed its best month of 2016.

Of course, the April number is less than any month in 2015, when an impressive $97 billion of CLOs were issued (that’s the second-best year ever, behind the $124 billion in 2014). As we’ve reported, analysts have cut expectations for CLO issuance for 2016, what with early-year capital markets headwinds and new CLO-related constraints set to take effect at year-end. – Staff reports

This full version of this story – which includes comprehensive first-quarter leveraged loan market analysis – is available at www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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