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.
Take 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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