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Loan funds net fifth consecutive outflow, but with small ETF inflow

U.S. leveraged loan funds saw a net outflow for a fifth consecutive week, with the redemption of $75 million in the week ended April 27, boosting the outflow to $692 million over the five-week span, according to Lipper. But with moderating redemption, the trailing-four-week observation contracts a bit, to negative $126 million this past week, from negative $154 million last week.

Loan fund flows April 27 2016

Today’s negative reading shows mutual fund outflows of $98 million filled in by ETF inflows of $23 million. There hasn’t been a misaligned reading like this since seven weeks ago, when mutual fund outflows of $432 million were dented by ETF inflows of $75 million.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.4 billion, with just 4% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.5 billion, but versus a small inflow of $144 million to ETFs, for a net negative reading of $3.4 billion.

The change due to market conditions this past week was barely positive, at 0.4%, with a gain of $240 million against total assets, which were $60.5 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.5 billion. —Matt Fuller

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

 

 

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US Leveraged Loan Funds See Fifth Straight Week of Withdrawals

us loan fund flows

U.S. leveraged loan funds saw a net outflow for a fifth consecutive week, with the redemption of $75 million in the week ended April 27, boosting the outflow to $692 million over the five-week span, according to Lipper. But with moderating redemption, the trailing-four-week observation contracts a bit, to negative $126 million this past week, from negative $154 million last week.

Today’s negative reading shows mutual fund outflows of $98 million filled in by ETF inflows of $23 million. There hasn’t been a misaligned reading like this since seven weeks ago, when mutual fund outflows of $432 million were dented by ETF inflows of $75 million.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.4 billion, with just 4% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.5 billion, but versus a small inflow of $144 million to ETFs, for a net negative reading of $3.4 billion.

The change due to market conditions this past week was barely positive, at 0.4%, with a gain of $240 million against total assets, which were $60.5 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.5 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 Leveraged Loan Funds See Another Week of Mild Outflows; That’s Four Straight

us loan fund flows

U.S. leveraged loan funds saw a net outflow for a fourth consecutive week, with the redemption of $93 million in the week ended April 20, boosting the outflow to $617 million over the four-week span, according to Lipper.

Today’s negative reading was just 12% tied to the ETF space, at $11 million. In contrast, last week’s reading was much more ETF-related, at 29% of the outflow, and even greater the week prior, at 43% of the outflow.

With another outflow that was modestly larger, the four-week-trailing observation falls deeper into the red, at negative $154 million per week, from negative $99 million last week and negative $37 million two weeks ago.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.3 billion, with just 4% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.5 billion, but versus a small inflow of $165 million to ETFs, for a net negative reading of $3.3 billion.

The change due to market conditions this past week was essentially positive 0.5%, with a gain of $330 million against total assets, which were $60.4 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.5 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, 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 Loans Gain 0.14% Today; YTD Return: 2.68%

Loans gained 0.14% today after gaining 0.06% yesterday, according to the LCD Daily Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, gained 0.18% today.

In the year to date, loans overall have gained 2.68%.


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Assets at US Leveraged Loan Funds Grow for First Time Since July

loan fund assets under management

With leveraged loan prices surging in the secondary market in March, loan mutual funds’ assets under management grew by $2.54 billion during the month, to $109.64 billion, according to S&P Global Market Intelligence LCD.

This is the first time that loan fund assets under management have grown since July 2015, and it’s the largest increase since February 2014.

That being said, essentially all of March’s increase can be attributed to secondary market gains, rather than a groundswell of interest in the asset class from retail investors. – Kerry Kantin

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 Third Straight Week of Outflows

U.S. leveraged loan funds saw a net outflow for a third consecutive week, with the redemption of $73 million in the week ended April 13 boosting the outflow to $524 million over the three-week span, according to Lipper.

us loan fund flowsToday’s negative reading was 29% tied to the ETF space, at $21 million. In contrast, last week’s reading was much more ETF-related, at 43% of the outflow.

Regardless of what that might suggest about fast money, market timing, and hedging strategies, this past week’s observation is another net negative, so the four-week-trailing observation falls deeper into the red, at negative $99 million per week, from negative $37 million last week and from positive $42 million two weeks ago.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.2 billion, with just 4% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.4 billion, but versus a small inflow of $93 million to ETFs.

The change due to market conditions this past week was essentially positive 0.5%, with a gain of $302 million against total assets, which were $60.1 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.4 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, 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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Technically Speaking: Leveraged Loan Market Brightens in March as Investors Return (Cautiously)

leveraged loan outstandings vs flows

In March, the U.S. leveraged loan market’s technical situation improved meaningfully amid (1) rising, though still tepid, CLO issuance; (2) a shift in retail flows from negative to slightly positive; (3) an ongoing supply squeeze; and (4) a dwindling new-issue calendar.

As a result, prices in the leveraged loan secondary bounced back from multi-year lows while new-issue clearing spreads tightened a bit from multi-year highs.

The chart illustrates what is perhaps the most telling technical stat of last month: visible capital formation in March was positive for the first time since November. The reason was that after seven straight months of net redemptions, loan funds that report weekly to Lipper FMI inched into positive territory, to the tune of $168 million, compared to $2.5 billion of withdrawals in February. – Staff reports

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US Leveraged Finance Issuance Tops $20B as Numericable Bolsters High Yield, Leveraged Loan Marts

U.S. leveraged finance issuance totaled a hefty $20 billion last week thanks to the largest single high yield bond tranche ever and a host of new credits in an improving leveraged loan market.

US leveraged finance volume

The weekly total is the most for the combined loan/bond markets since the $31.6 billion during the first week of November, according to S&P Global Market Intelligence LCD.

Numericable was the big news of the week as the French cable concern dramatically upsized its planned $2.25 billion bond offering, backing a refinancing, to $5.2 billion – the largest in-market increase for a single tranche ever – amid investor demand.

“The stunning upsize surpassed the prior record holder of $2.65 billion, to $3.4 billion, on the 7% notes due 2023 backing First Data last fall,” writes Matthew Fuller, who covers the high yield market for LCD.

With the help of Numericable, U.S. high yield bond issuance totaled $10.9 billion last week, the most in five months, says Fuller. There were other billion dollar-plus deals, as well: one for Charter Communications and one backing MGM Growth Properties.

The increased activity comes as investors return to high yield funds and ETFs, which saw $1.2 billion in cash last week, the 7th week of net inflows out of the last eight, according to Lipper.

With last week’s deals, U.S. high yield issuance year-to-date totals $47 billion. While that’s down some 55% from the same period last year, the 2016 market continues to gain ground on the 2015 pace (the YOY difference was roughly 75% a few weeks ago).

The U.S. leveraged loan market was likewise busy last week, posting $9.1 billion in issuance. Numericable was a factor here as well, contributing the week’s largest credit, a $2.6 billion deal that is part of the company’s refinancing package. But Numericable did not have the loan market to itself.

“With technicals receiving a quarter-end booster shot, investors filled a procession of deals for well-rated and seasoned issuers this week, writes LCD’s Chris Donnelly, in his weekly market wrap. “For well-regarded issuers, investors again appear to be throwing in commitments quickly, driving accelerated timing.”

The $9 billion this week brings year-to-date U.S. leveraged loan issuance to $102 billion. That’s down roughly 7% from the same period last year. – Tim Cross

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 $262M Cash Withdrawal

leveraged loan fund flows

U.S. leveraged loan funds saw a net outflow for the second time in five weeks, at negative $262 million in the week ended April 6, according to Lipper. The outflow builds on last week’s withdrawal of $189 million, which itself ended a nascent, three-week inflow streak totaling $358 million after a 32-week outflow streak totaling $17.6 billion.

Today’s negative reading was 43% tied to the ETF space, at $112 million. In contrast, last week’s reading was just 10% ETF-related. Then again, two weeks ago, the inflow was almost all ETFs, at 95% of the inflow, or $120 million, with just $6 million of mutual fund inflows.

Regardless of what that might suggest about fast money, market timing, and hedging strategies, this past week’s observation is another net negative, so the four-week-trailing observation falls into the red, at negative $37 million per week, from positive $42 million last week.

Year-to-date outflows from leveraged loan funds are essentially steady at $5.1 billion, with just 4% ETF-related. A year ago at this juncture, it was also mostly all mutual fund outflows, at $3.9 billion, with a small contribution of negative $104 million from ETFs, or 3% of the total redemption.

The change due to market conditions this past week was essentially positive 0.5%, with a gain of $314 million against total assets, which were $59.8 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.4 billion. — Matt Fuller

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

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 $189M Withdrawal, Snapping 3-Week Inflow Streak

U.S. leveraged loan funds saw a net outflow for the first time in four weeks, at negative $189 million in the week ended March 30, according to Lipper. The outflow wipes out last week’s inflow of $126 million, and curtails a nascent, three-week inflow streak totaling $358 million after a 32-week outflow streak totaling $17.6 billion.

us loan fund flows

Today’s negative reading was 10% linked to the ETF space, at $18 million. In contrast, last week’s reading was almost all ETFs, at 95% of the inflow, or $120 million, with just $6 million of mutual fund inflows.

Regardless of what that might suggest about fast money, market timing, and hedging strategies, this past week’s observation is net negative, but the four-week-trailing observation rises to positive $42 million per week, from positive $203,000 per week last week, and negative $186 million two weeks ago.

Year-to-date outflows from leveraged loan funds are essentially steady at $4.9 billion, with just 2% ETF-related. A year ago at this juncture, it was mostly all mutual fund outflows, at $3.9 billion, with a small contribution of negative $210 million from ETFs, or 5% of the total redemption.

The change due to market conditions this past week was essentially nil, at positive $19 million on total assets, which were $59.8 billion at the end of the observation period. ETFs represented about 9% of the total, at $5.5 billion. — Matt Fuller

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

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.