Junk mutual funds, ETFs add $573 million for week ended July 17

By Abigail W. Adams

Portland, Me., July 5 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw their sixth consecutive inflow with $573 million entering the space for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

The inflow was preceded by an inflow of $619 million for the week ended July 16, $802 million for the week ended July 3, a substantial inflow of $3.089 billion for the week ended June 26, an inflow of $602 million for the week of June 19 and an inflow of $1.72 billion for the week ended June 12.

The June 26 inflow was the third time in 2019 inflows have topped $3 billion.

The recent streak of inflows has reversed a growing trend of outflows with five of the seven outflows in 2019 occurring since late April.

The recent inflows were preceded by the record-setting outflow of $3.22 billion for the week ended June 5, which was the largest of 2019.

The outflow was preceded by a substantial outflow of $1.27 billion for the week ended May 29.

While there was a modest inflow of $4 million for the week ended May 22, the inflow was preceded by what was previously the largest outflow of 2019 – $2.57 billion left the space for the week ended May 1.

However, the recent streak of inflows continues to replenish the cumulative inflow that was dwindling due to the series of substantial outflows.

Cumulative fund flows in 2019 now stand at $14.62 billion entering the space in the 28 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 seven inflows and three outflows.

There have been 21 inflows and seven outflows in the 28 weeks of 2019, according to the Prospect News analysis.

IG corporates see inflows

Among other asset classes, investment-grade corporate funds saw a substantial inflow of $3.647 billion for the week ended Wednesday.

The inflow is the seventh consecutive week funds have added money.

Funds saw inflows of $570 million for the week ended July 10, $1.756 billion for the week ended July 3, $3.238 billion for the week ended June 26, $3.65 billion for the week ended June 19, $4.02 billion for the week ended June 12 and $924 million entering the space for the week ended June 5.

The inflows have surpassed the losses from the record-setting outflow of $5.1 billion that left the space for the week ended May 29.

The outflow was the largest since 2015, according to a market source.

© 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.