Investors Withdraw $536M from US Leveraged Loan Funds

US loan fund flows
U.S. loan funds recorded an outflow of $536 million for the week ended Nov. 22, according to Lipper weekly reporters only. This exit comes on the heels of the previous week’s $530 million outflow, and is the sixth consecutive week of outflows, for a total exit of $2.8 billion over that period.

Note for the week ended Nov. 8, U.S. loan funds recorded an exit of roughly $1.5 billion, although more than $1 billion of that total outflow was the result of a reclassification at a single institutional investor, whereby the investor’s open-end fund was liquidated and merged into its closed-end fund.

Mutual funds this week made up $475 million of the total outflow this week, as $61 million exited ETFs.

The four-week trailing average declined to negative $668 million, from negative $555 million last week.

Year-to-date inflows from leveraged loan funds now total $11.1 billion, based on inflows of roughly $6.6 billion to mutual funds and inflows of $4.5 billion to ETFs, according to Lipper.

The change due to market conditions this past week was positive $140 million. Total assets were $95.7 billion at the end of the observation period. ETFs represent about 20% of the total, at $19.1 billion. — James Passeri

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