The long run of asset growth at U.S. loan funds is over.
Amid sustained retail cash withdrawals and a sour secondary market, AUM at U.S. loan funds decreased by $790 million in November, the first retreat since June 2016, according to Lipper and LCD.
Loan fund assets now total $156 billion, the lowest reading since July. The end of the streak, after an impressive 16 months, is no surprise. Loan fund growth began stalling in the second half of 2017, coinciding with the end of a lengthy run of retail cash inflows to the asset class, as the outlook regarding additional interest rate hikes by the Federal Reserve clouded. – Tim Cross
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