content

Investors Pour Whopping $1.7B into US Leveraged Loan Funds

US loan funds

U.S. leveraged loan funds recorded an inflow of $1.76 billion in the week ended Dec. 7, according to the Lipper weekly reporters only. This is the largest single-week inflow since August 2013 and follows a $1.12 billion inflow from two weeks ago.

Despite a weak start to 2016, flows have been solidly positive in the second half of year, and particularly in recent weeks. The three largest inflows of the year have been recorded in the last four weeks. The weekly average over that span is $971.2 million, up from $519.7 million last week.

Inflows have now been recorded in 28 of 49 weeks this year.

ETF flows were a record high $559.9 million of the total this week, or 32%, while $1.2 billion flowed into mutual funds.

Year-to-date inflows to leveraged loan funds are $2.31 billion, based on outflows of $1.28 billion from mutual funds against inflows of $3.59 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $343.8 million, the highest since the week ended July 13. Total assets were $75.5 billion at the end of the observation period. ETFs represent about 17% of the total, at $12.8 billion. — Jon Hemingway

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

Leveraged Loan Coffers Grow as Investors Eye Rate Hike, Trump Presidency

loan fund assets

Assets at U.S. loan funds rose by $2.84 billion in October, to $121.2 billion, as investors continued to pour money into the market.

The primary reasons for the ongoing investor bullishness regarding loans: A Fed rate hike later this month – which would bolster a floating-rate asset class such as loans – appears all but a done deal, and investors appear keen to bank on increased spending/inflation accompanying a Trump presidency.

This marks the fourth straight monthly gain for the asset class, for a total of $9.7 billion, according to Lipper. Since February, assets at U.S. loan funds have risen by nearly $14 billion.

The two main technical drivers of this asset growth will be familiar.

The first: loan funds saw a net inflow of $1.65 billion in October, according to weekly reporters to Lipper. That’s the fourth straight monthly gain, and is the largest since the $1.9 billion inflow in February 2014.

The second: Buoyed by the steady stream of cash flowing into loan funds and ETFs, prices in the secondary continued to rise in October, jumping by a hefty 205 bps during the month, according to the S&P/LSTA Leveraged Loan Index. (Note: some of that increase was due to credits exiting the Index).

As prices on loans increase, of course, their asset value rises. – Tim Cross

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

US Leveraged Loan Funds See Whopping $1.12B Investor Cash Inflow

U.S. leveraged loan funds recorded an inflow of $1.12 billion in the week ended Nov. 23, according to the Lipper weekly reporters only. That nearly doubles the $673 million from the prior week and marks the largest inflow into the asset class since the week ended Sept. 18, 2013 ($1.33 billion).

US loan funds

Loan funds have been on a tear in the second half of the year. Inflows were recorded in 19 of the last 22 weeks for a total inflow of $5.78 billion during that span. Over the first 26 weeks of 2016 the cumulative outflow was $5.565 billion, with 18 negative weeks against just eight positive readings.

As such, the year-to-date figure swung positive with last week’s result, at $212.5 million, versus a total outflow of $906.2 million as of Nov. 16. That’s based on outflows of $2.7 billion from mutual funds against inflows of $2.9 billion to ETFs, according to Lipper.

ETF flows were 36% of the total last week, but logged their highest ever inflow by volume of $406.2 million. For mutual funds, the $712.4 million was the largest weekly inflow since January 2014.

With this large inflow, the four-week trailing average jumped to positive $471.5 million, from $264.5 million in the week prior.

The change due to market conditions this last week was positive $120.3 million, the largest increase in five weeks. Total assets were $70.56 billion at the end of the observation period. ETFs represent about 17% of the total, at $12.1 billion. — Jon Hemingway

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

As Junk Bonds Take Hit, Leveraged Loan Funds See Big Cash Inflow

U.S. leveraged loan funds recorded an inflow of $666.3 million in the week ended Nov. 16, according to the Lipper weekly reporters only. This is the largest inflow since the week ended Feb. 26, 2014 when the inflow was $673 million.

US loan funds

This is a strong answer to last week’s mild $45 million outflow. There have now been inflows in 15 of the last 16 weeks for a total of $4.49 billion over that span.

This is in contrast to the high yield bond market, of course, which saw another big cash withdrawal this week. 

The four-week trailing average for loans rises to positive $264.5 million, from $226.6 million last week.

ETF flows were just $10.6 million of the total this week, with $655.7 million flowing into mutual funds.

Year-to-date outflows from leveraged loan funds now total $906.2 million, based on outflows of $3.4 billion from mutual funds against inflows of $2.51 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $42.25 million, snapping two straight weeks of declines. Total assets were $71.73 billion at the end of the observation period. ETFs represent about 16% of the total, at $11.66 billion. — Jon Hemingway

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

US Leveraged Loan Fund Inflow Streak Ends at 14 Weeks

US loan funds

U.S. leveraged loan funds recorded an outflow of $45.4 million in the week ended Nov. 9, according to the Lipper weekly reporters only. This is the first outflow since the week ended July 27, snapping a 14-week run of inflows that totaled $3.87 billion during that period.

The four-week trailing average drops to positive $226.6 million, from $341.8 million last week.

ETF flows were positive, at $53.3 million, against outflows from mutual funds of $98.7 million.

Year-to-date outflows from leveraged loan funds total $1.57 billion, based on outflows of $4.1 billion from mutual funds against inflows of $2.5 billion to ETFs, according to Lipper.

The change due to market conditions this past week was negative $82.5 million, marking the first two-week decline since June. Total assets were $70.62 billion at the end of the observation period. ETFs represent about 16% of the total, at $11.64 billion. — Jon Hemingway

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

US Leveraged Loan Funds See 13th Straight Week of Cash Inflows

US loan funds

U.S. leveraged loan funds recorded an inflow of $290.6 million in the week ended Oct. 26, according to the Lipper weekly reporters only. This is off the recent pace, down from $514.8 million last week, but it extends the inflow streak to 13 weeks and tops the weekly average during that time of $286 million.

The total inflow during this current streak is $3.72 billion.

The four-week trailing average dropped to positive $413.2 million, from $460.7 million last week.

ETF flows were positive, at $43.7 million, or 15% of the total, which is the lowest rate amid this current win streak.

Year-to-date outflows from leveraged loan funds total $1.67 billion, based on outflows of $4.02 billion from mutual funds against inflows of $2.35 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $72.2 million, or 0.11% of total assets. Total assets were $70.75 billion at the end of the observation period. ETFs represent about 16% of the total, at $11.5 billion. — Jon Hemingway

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

Leveraged Loans: As Investors Pour Cash into Market Demand Swamps Supply

loan technicals

The U.S. leveraged loan market continued to favor issuers in September, with demand for paper topping supply by $9.1 billion, according to LCD. While that’s down from the whopping $12.1 billion imbalance in August it’s up from a still-hefty $6.5 billion in July.

As a result of this three-month technical tilt, the September loan market was set firmly in overdrive, leading to outsized activity across many corners of the asset class, including institutional issuance (which hit a record high), high-yielding recap/dividend deals (the $6.9 billion in September was the most since July 2015), and even CLOs, a crucial leveraged loan investor constituency that has been largely dormant for much of 2016.

Why the supply/demand imbalance? Investors hungry for yield – and paper – have been pouring cash into U.S. loan funds, and CLO issuance had its busiest month of the year, as that market looks to price deals before new regulations hit at year-end. – Tim Cross

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

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.

content

Investors Continue to Pour Cash into US Loan Funds: $515M This Week

U.S. leveraged loan funds recorded an inflow of $514.8 million in the week ended Oct. 19, according to the Lipper weekly reporters only. This is the strongest one-week inflow since April 15, 2015 and runs the current inflow streak to 12 weeks for a total of $3.23 billion over that span.

US loan fund flowsThis week’s result raises the four-week trailing average to positive $460.7 million, from $411.6 million last week.

ETFs accounted for 55%, or $284 million, of the total inflow this week.

Year-to-date outflows from leveraged loan funds now total $1.96 billion, based on outflows of $4.27 billion from mutual funds against inflows of $2.31 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $142 million, or 0.21% of total assets. Total assets were $67.1 billion at the end of the observation period. ETFs represent about 12% of the total, at $8.22 billion. — Jon Hemingway

Try LCD for free!

Follow LCD News on Twitter.

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.

content

Investors Pour $415M Into US Leveraged Loan Funds

us loan fund flows

U.S. leveraged loan funds recorded an inflow of $415.4 million in the week ended Oct. 12, according to the Lipper weekly reporters only. This is the third consecutive week of flows over $400 million and the eleventh straight week of inflows.

Loan funds have enjoyed a total inflow of $2.9 billion since the week ended Aug. 3. This week’s result raises the four-week trailing average to positive $411.6 million, from $384.3 million last week.

ETFs accounted for 49%, or $202 million, of the total inflow this week.

Year-to-date outflows from leveraged loan funds now total $2.48 billion, based on outflows of $4.5 billion from mutual funds against inflows of $2.03 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $69.8 million, or 0.11% of total assets. Total assets were $66.4 billion at the end of the observation period. ETFs represent about 12% of the total, at $7.92 billion. — Jon Hemingway

Follow LCD News on Twitter.

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.

content

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

Follow LCD News on Twitter.

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.