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US Leveraged Loan Funds Extend Inflow Streak With $318M Gain

us loan flows

U.S. leveraged loan funds recorded an inflow of $318.4 million in the week ended Sept. 21, according to the Lipper weekly reporters only. That’s up slightly from $306.2 million last week and just shy of the $318.2 million infusion in the week prior, which is the 2016 high.

With this latest reading, the inflow streak for loan funds hits eight weeks for a total of $1.585 billion over that span.

This week’s result raises the four-week trailing average to an inflow of $251 million, from $246 million.

ETFs accounted for 40%, or $127 million, of the total inflow this week.

Year-to-date outflows from leveraged loan funds now total $3.8 billion, based on outflows of $5.33 billion from mutual funds against inflows of $1.53 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $83.7 million. Total assets were $64.6 billion at the end of the observation period. ETFs represent about 11% of the total, at $7.4 billion. — Jon Hemingway

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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.

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Demand for Higher-Yielding Leveraged Loans Surges as Supply Slips

supply v demand - leveraged loans

The already issuer-friendly U.S. leveraged loan market kicked into a higher gear in August as institutional investor demand for paper topped available supply – that would be new-issuance – by a whopping $12.1 billion, according to LCD, an offering of S&P Global Market Intelligence.

What does that mean for the market? Thinner pricing (and returns) for investors, for starters.

Indeed, the average yield to maturity dipped to 5.09% in August from 5.28% in July, as U.S. loan investors scrambled for a piece of pretty much any leveraged credit that came to market last month.

To that point, price-flexes, a reliable gauge of  which way the leveraged loan market is tilting, dramatically favored issuers in August. There were 23 deals on which pricing or fees were flexed downward during syndication – benefiting issuers – while only four were flexed higher (benefiting investors).

For this analysis, loan demand includes CLO issuance and inflows to loan funds and ETFs. Supply entails the amount of outstanding loans, per the S&P/LSTA Index.

You can read more about how price-flex works in LCD’s Loan Market Primer (it’s free).

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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.

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US Loan Funds See Largest Cash Inflow – $318M – in 17 Months

US loan funds

U.S. leveraged loan funds recorded an inflow of $318.4 million in the week ended Sept. 7, according to the Lipper weekly reporters only. This is the strongest inflow since April 15, 2015 and it extends the positive streak to six weeks, for a total inflow of $960.9 million over that span.

With this week’s figure, the four-week trailing average moves up to $201 million, from $145.5 million. This is the highest level since April 2014.
ETFs accounted for 36% of the total inflow this week and have now strung together seven straight weeks of inflows.

Year-to-date outflows from leveraged loan funds now total $4.43 billion, based on outflows of $5.65 billion from mutual funds against inflows of $1.22 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $111.2 million. Total assets were $60.3 billion at the end of the observation period. ETFs represent about 12% of the total, at $7.09 billion. — Jon Hemingway

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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.

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US Leveraged Loan Funds See $125M Investor Cash Inflow

loan fund flows

U.S. leveraged loan funds recorded an inflow of $125.4 million in the week ended Aug. 17, according to the Lipper weekly reporters only. This is the third straight week of increasing inflows to the asset class, following last week’s $96.4 million and $60.4 million in the week prior.

The reading was 37% attributable to the ETF segment, up from 20% of last week’s reading.

The trailing four-week average rose to $66.7 million, from $52.6 million last week, amid the increasing inflow.

Year-to-date outflows from leveraged loan funds now total $5.11 billion, based on outflows of $5.9 billion from mutual funds against inflows of $779 million to ETFs, or inverse 15%, according to Lipper.

The change due to market conditions this past week was positive $40.2 million, a negligible change against total assets, which were $59.2 billion at the end of the observation period. ETFs represent about 11% of the total, at $6.6 billion. — Jon Hemingway

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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.

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

us loan fund flows

U.S. leveraged loan funds recorded an inflow of $60 million in the week ended Aug. 3, according to the Lipper weekly reporters only. This wipes out last week’s net $15 million outflow and it represents the third inflow over the past four weeks for an infusion of $250 million over that span.

The reading was 35% attributable to the ETF segment. That contrasts with last week when there were outflows of $38 million from mutual funds filled in partially by ETF inflows of $23 million.

The trailing four-week average rises to positive $63 million this past week, from positive $43 million last week and from negative $84 million two weeks ago. The current observation is the most robust in nine weeks.

Year-to-date outflows from leveraged loan funds total $5.3 billion, based on outflows of $6 billion from mutual funds against inflows of $713 million to ETFs, or inverse 13%, according to Lipper.

The change due to market conditions this past week was almost nil, at positive $135 million, or just 0.2% against total assets, which were $61.8 billion at the end of the observation period. ETFs represent about 11% of the total, at $6.5 billion. — Matt Fuller

Follow Matthew on Twitter @mfuller2009 for leveraged debt deal-flow, fund-flow, trading news, and more.

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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.

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European CLO Issuance Hits 2.0-Era High of €2.56B

European CLO issuance

Those predicting a post-Brexit referendum surge of European CLO issuance appear to have called it right—at least over the near term—with July racking up the highest monthly issuance tally in the 2.0 era.

Following the vote there were some concerns that the market would halt as investors hugged the sidelines, given the uncertainty. But the relative calm and stability of the broader markets kept players active, enabling issuers prevented from accessing the primary ahead of the vote to price transactions.

All told, July’s supply reached €2.56 billion, well above the €1.82 billion notched up during March, the next-busiest month this year. The previous monthly volume record in the 2.0 era was June 2014, which hosted €2.49 billion of supply, according to LCD. – Sarah Husband/Andrew Park

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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.

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US Leveraged Loan Funds See Another Cash Inflow, Though ETF Withdrawals

U.S. leveraged loan funds recorded a net inflow of $69 million in the week ended July 20, according to the Lipper weekly reporters only. This is the second infusion of cash to the asset class after four weeks of outflows for a total inflow of $206 million over the two weeks.

Today’s reading was mixed, however, with inflows of $85 million to mutual funds against outflows of $16 million from  ETFs.

us loan fund flowsWhatever that might suggest about fast money, market timing, and hedging strategies, this week’s inflow narrows the trailing four-week average to negative $84 million per week, from negative $118 million a week ago.

Year-to-date outflows from leveraged loan funds now total $5.4 billion, based on outflows of $6 billion from mutual funds against inflows of $670 million to ETFs, or inverse 12%, according to Lipper.

The change due to market conditions this past week was positive $205 million on total assets of $62.3 billion at the end of the observation period, for a gain of approximately 0.3% for the week. ETFs represent about 10% of the total, at $6.5 billion. — Matt Fuller

Follow Matthew on Twitter @mfuller2009 for leveraged debt deal-flow, fund-flow, trading news, and more.

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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.

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Brexit Jitters End US Loan Fund Growth Streak at 3 Months

loan funds assets under management

After three months of grinding higher, US leveraged loan mutual fund assets under management reversed course in June, contracting by $900 million, to $111.45 billion, according to LCD and Lipper.

There are two main reasons for the mild decline. Amid the Brexit-related volatility in the month, funds experienced modest outflows. Mutual funds that report weekly to Lipper FMI posted a net outflow of $582 million for the four weeks ended June 29. Most of the outflows occurred in the final week of the month, when these funds posted a net $525 million withdrawal.

The other reason: leveraged loan secondary prices ended June down slightly, further nicking NAV. – Kerry Kantin

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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.

 

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Credit Suisse Asset Mgmt Prices Hefty $814M CLO

Citi on Friday priced an $814.25 million CLO for Credit Suisse Asset Management, the manager’s second CLO of the year, according to market sources.

The manager will retain a 5% vertical slice in order to comply with U.S. risk retention.

Pricing details are as follows:

The transaction will close on August 25, with a non-call period ending in July 2018 and reinvestment period ending in July 2021. The stated maturity is in July 2029.

Year-to-date issuance is now $28.83 billion from 67 CLOs, according to LCD data. July’s totals are now $2.6 billion from five transactions. — Andrew Park

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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.

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After Hefty Withdrawal Last Week, Outflows to U.S. Leveraged Loan Funds Ease

US loan fund flows

U.S. leveraged loan funds recorded a net outflow of $18 million in the week ended July 6, according to the Lipper weekly reporters only.

Today’s reading reflects an outflow of $93 million from mutual funds swamped by an inflow of $75 million to ETFs.

Year-to-date outflows from leveraged loan funds now total $5.7 billion.

The change due to market conditions this past week was positive $325 million on total assets of $59 billion at the end of the observation period. ETFs represent about 10% of the total, at $6.3 billion. — Matt Fuller

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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.