Junk mutual funds, ETFs see $21 million inflow for week ended May 1

By Abigail W. Adams

Portland, Me., May 2 – 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 $21 million for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

The inflow was preceded by an outflow of $521 million for the week ended April 24, which was the first outflow in seven weeks.

Funds have seen a steady streak of substantial inflows. Inflows were $1.1 billion for the week ended April 17, $655 million for the week ended April 10, $2 billion for the week ended April 3, $590 million for the week ended March 27, $1.8 billion for the week ended March 20 and $1.04 billion for the week ended March 13.

Prior to the week ended April 24, the last outflow was for the week ended March 6 when $1.91 billion left the space.

The March 6 outflow also broke a streak of six consecutive inflows, which included the record-setting inflow of $3.86 billion for the week ended Feb. 6.

The inflow for the week ended Feb. 6 was the largest the space had seen since December 2016.

While funds saw record outflows in 2018, fund flows in 2019 have been net positive with a cumulative inflow of $14.49 billion in the 17 weeks thus far, 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, funds have seen eight inflows and two outflows.

There have been 14 inflows and three outflows in the 17 weeks of 2019, according to the Prospect News analysis.

IG corporates see inflows

Among other asset classes, investment-grade corporate funds saw a modest inflow of $375 million for the week ended Wednesday.

The modest inflow followed a massive inflow of $5.86 billion for the week ended April 24.

High-grade funds have seen a steady streak of inflows.

There was an inflow of $2.31 billion for the week ended April 17, $2.9 billion for the week ended April 3, $2.75 billion for the week ended March 27, $5.14 billion for the week ended March 20, $3.3 billion for the week ended March 13 and $1.99 billion for the week ended March 6.

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