Junk funds see outflows of $829 million for week ended Dec. 6

By Abigail W. Adams

Portland, Me., Dec. 6 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw outflows of $829 million for the week ended Dec. 6, according to fund-flow statistics generated by AMG Data Services Inc.

The week marked the third consecutive week of large outflows. Funds saw $1.2 billion leave the space for the week ended Nov. 28 with $2.191 billion leaving the space for the week ended Nov. 21.

The outflows followed two consecutive weeks of inflows. Funds saw $487 million in inflows for the week ended Nov. 14.

Funds added $1.04 billion in cash for the week ended Nov. 7, which was the first billion-dollar inflow since the week ended Oct. 3.

Funds saw outflows of $1.043 billion in the week ended Oct. 31 and outflows of $2.364 billion for the week ended Oct. 24.

While funds saw inflows of $447 million for the week ended Oct. 17, the week was preceded by an outflow of $4.928 billion for the week ended Oct. 10.

The $4.928 billion outflow was the third largest outflow on record and the second largest outflow of 2018.

The second largest outflow on record and the largest of 2018 was the $6.3 billion that left the space in the week ended Feb. 14, 2018.

Funds saw inflows of $1.389 billion for the week ended Oct. 3, which pared losses from the $1.569 billion outflow in the week ended Sept. 26.

While fund flows have been mixed throughout October and November, outflows continue to eclipse inflows.

The cumulative outflow for the year now totals $29.09 billion, according to a Prospect News analysis of the reports by the Arcata, Calif.-based unit of Thomson Reuters Corp.’s Lipper analytics division.

For the past 10 weeks, the funds have seen three inflows and seven outflows.

There have been 19 inflows and 30 outflows in the 49 weeks to date in 2018, according to the Prospect News analysis.

IG corporates see outflows

Among other asset classes, investment-grade corporate funds saw outflows of $1.268 billion, marking the second consecutive week of large outflows.

Funds saw outflows of $1.688 billion for the week ended Nov. 28 after a three-weak streak of inflows.

Funds saw inflows of $287 million for the week ended Nov. 21.

Funds added $755 million for the week ended Nov. 14 and $1.849 billion for the week ended Nov. 7.

Funds saw outflows of $3.753 billion for the week ended Oct. 31, the largest in recent history.

Funds saw inflows of $415 million for the week ended Oct. 25, after a modest outflow the previous week.

Investment-grade funds saw an outflow of $54 million for the week ended Oct. 17 after four consecutive weeks of inflows.

Investment-grade funds saw inflows of $1.222 billion for the week ended Oct. 3, $1.781 billion for the week ended Sept. 27, $1.02 billion for the week ended Sept. 19 and $3.217 billion for the week ended Sept. 12.

Investment-grade funds also saw an outflow of $297 million for the week ended Sept. 5.

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