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US leveraged loan funds register outflow for 10th straight week

Cash outflows from bank loan funds grew to $583 million during the week ended Sept. 17, wider than respective outflows of $342 million and $435 million in the previous two weeks, according to Lipper.

The influence of bank-loan ETFs on this week’s number was just 3%, or $16 million. This compares to an outflow of $70 million from ETFs last week.

There now have been 21 weeks of outflows over the past 23 weeks, for a total outflow of $11.4 billion over that span, which follows a record-shattering 95-week inflow streak that totaled $66.7 billion.

The trailing four-week average gaps out slightly to a negative $414 million per week, from negative $404 million last week. This measure remains below the recent peak of negative $858 million from the week ended June 11.

The year-to-date fund-flow reading pushes deeper into negative territory, at $4.4 billion, based on a net withdrawal of $4.9 billion from mutual funds against a net inflow of $442 million to ETFs. In the comparable year-ago period, inflows totaled $43 billion, with 11% tied to ETFs.

The change due to market conditions was a negative $117 million, versus total assets of $103.0 billion at the end of the observation period. The ETF segment comprises $8 billion of the total, or approximately 8%. – Joy Ferguson

 

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Despite CLO boom, structured finance share of leverage loan mart eases

outstandings CLO vs loanIn a year when CLO issuance is booming and retail flows are negative, it’s surprising to note that the share of outstanding institutional loans held by structured-finance vehicles actually has declined, easing to 43.4% (as of Sept. 11), from 44.8% at the end of 2013. By dollar amount, that’s $343.1 billion (according to Wells Fargo CDO analyst David Preston) of the $790.1 billion in the S&P/LSTA Index.

This analysis is part of a longer LCD News story that also details CLO issuance, as a share of LSTA Index leveraged outstandings, structured finance outstandings – CLO 1.0 vs. 2.0 – and near-term possibilities regarding CLOs that will be called.

For more on how the CLO market works check out LCD’s online Loan Market Primer. It’s free, of course.

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Europe: Quirolo joins Cadwalader, Wickersham & Taft as a partner

cadwalader David Quirolo has joined CadwaladerWickersham & Taft as a partner in the Global Capital Markets Practice Group, in the firm’s London office. Quirolo joins from Ashurst, where he was a partner.

His practice focuses primarily on CLOs and other securitization and repackaging transactions involving various asset types, and advises arrangers and collateral managers as well as issuers, managers, originators, and investors in a variety of structured finance transactions, both in the U.S. and Europe.

Prior to joining Ashurst, Quirolo spent eight years in Cadwalader’s New York and London offices. – Sarah Husband