Following the bout of market volatility and accompanying large outflows posted in April, both loan funds and high yield bond funds have turned the corner and posted inflows in recent weeks as investor sentiment improved across asset classes. Retail loan funds have posted inflows in each of the last 4 weeks, while it’s been 6 consecutive weeks of inflows for HY bond funds. In the most recent week, loan funds (that report their flows on a weekly basis) pulled in US$146m and HY bonds funds added US1.46bn. Despite the recent inflows, loan funds have seen outflows of US$6bn year-to-date in contrast to roughly US$4bn of inflows for HY bond funds.
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With inflation running hot, rate hike expectations strengthen
A hotter-than-expected inflation reading has renewed expectations for near-term Federal Reserve tightening. The Consumer Price Index rose 0.6% month-over-month, pushing…
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Leveraged loans keep running up a tab. Senior direct lending already knows what it owes.
