Junk funds see second consecutive week of inflows; add $828 million

By Abigail W. Adams

Portland, Me., Aug. 9 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw inflows for the second consecutive week, adding $828 million for the week ended Aug. 8, according to fund-flow statistics generated by AMG Data Services Inc.

Combined with the previous week’s inflows of $37 million, the inflows have outstripped the losses seen in late July.

Last week’s inflows broke two consecutive weeks of outflows which saw $548 million of cash depart in the week ending July 25 and $260 million in the week prior.

While the losses came after a sizable $1.852 billion gain during the week ending July 11, in the preceding period inflows had paled in comparison to outflows, which had remained at record levels.

There was a $1.729 billion outflow during the week ended July 4, the third straight period of losses after $1.135 billion in the week to June 27 and $232 million before that.

The cumulative outflow for the year now totals about $18.39 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 four inflows and six outflows.

There have been 11 inflows and 21 outflows in the 31 weeks to date in 2018, according to the Prospect News analysis.

IG corporate inflows continue

Among other asset classes, investment-grade corporate funds continued to see solid inflows with $2.804 billion entering the space.

The gain follows inflows of $1.211 billion in the week ending Aug. 1 and $1.986 billion in the week ending July 25, which came after a similarly sized inflow of $2.021 billion the week before.

© 2015 Prospect News.
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