Junk mutual funds, ETFs add $73 million during week ended Jan. 30

By Abigail W. Adams

Portland, Me., Jan. 31 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw a modest inflow of $73 million for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

While the inflow follows an outflow of $264 million for the week ended Jan. 23, the outflow was preceded by a record-setting inflow of $3.28 billion for the week ended Jan. 16 – the largest inflow since December 2016, according to a market source.

Funds also saw a substantial inflow of $1.05 billion for the week ended Jan. 9, which ended a streak of seven consecutive outflows.

Funds saw outflows of $628 million for the week ended Jan. 2, which was preceded by a substantial outflow of $3.53 billion for the week ended Dec. 26.

Junk funds saw $789 million leave the space for the week ended Dec. 19, $2.06 billion leave the space for the week ended Dec. 12, $829 million leave the space in the week ended Dec. 5, $1.2 billion leave the space in the week ended Nov. 28 and $2.19 billion leave the space for the week ended Nov. 21.

There was a record amount of outflows in 2018 with the cumulative outflow totaling $36.5 billion, according to a Prospect News analysis of the reports by the Arcata, Calif.-based unit of Thomson Reuters Corp.’s Lipper analytics division.

However, the fund flows in 2019 have been net positive with a cumulative inflow of $3.51 billion in the five weeks thus far.

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

There have been three inflows and two outflows in the five weeks of 2019, according to the Prospect News analysis.

IG corporates see outflows

Among other asset classes, investment-grade corporate funds saw inflows of $34 million for the week ended Wednesday.

The inflow follows an outflow of $158 million for the week ended Jan. 23, which was preceded by a substantial inflow of $913 million for the week ended Jan. 16.

High-grade funds saw substantial outflows in the first two weeks of January with $1.14 billion leaving the space in the week ended Jan. 9 and $4.52 billion leaving the space for the week ended Jan. 2.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.