Junk funds take in $967 million during week, fourth straight gain

New York, Oct. 12 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall junk market liquidity trends – were once more in positive territory, notching up a fourth consecutive weekly gain, according to numbers released on Thursday.

A source familiar with the fund-flow statistics generated by AMG Data Services Inc. said that $967 million more came into those weekly-reporting-only domestic funds than left them during the week ended Wednesday, Oct. 11.

The influx came after an inflow of $646 million for the week ended Oct. 4, of $433 million for the week ended Sept. 27 and $866 million for the period ended Sept. 20.

The run now totals $2.92 billion.

Before the latest string of gains, the funds saw a modest net outflow of $96 million during the week ended Sept. 13, according to the figures from the Arcata, Calif.-based unit of Thomson Reuters Corp.’s Lipper analytics division.

21st inflow of year

The latest inflow was the 21st so far this year versus 20 outflows, according to a Prospect News analysis of the data.

It also narrows the year-to-date net outflow to $6.66 billion from $7.63 billion the previous week.

The cumulative outflow total remains below the $9.82 billion of red ink seen during the Aug. 30 week, the widest year-to-date net outflow figure.

Cumulative fund-flow estimates may be revised upward or downward or they may be rounded off and could include unannounced revisions and adjustments to figures from prior weeks.

IG corporates gain

Looking at fund flows for other asset classes during the week, investment-grade corporate funds also posted their fourth consecutive weekly gain following an unusual two straight weekly losses.

For the week, the corporate funds attracted $2.42 billion of cash, according to the Lipper data.

That follows $3.77 billion of inflows the previous week and gains of $1.18 billion and $2.86 billion before that.

The additions of cash followed net outflows of $25 million during week ended Sept. 13 and $43 million during the week ended Sept. 6, which had been the first loss of the year after 35 straight inflows this year and 37 inflows overall dating back to the week ended Dec. 21, 2016, according to a Prospect News analysis of the data.

The latest gain inflow raised the year-to-date net inflow figure to $97.471 billion.

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