Junk funds see inflows of $1.04 billion, wipe out last week’s losses

By Abigail W. Adams

Portland, Me., Nov. 8 – High-yield mutual funds and exchange-traded funds – considered a reliable barometer of overall liquidity trends in the junk market – saw $1.04 billion in inflows for the week ended Nov. 7, according to fund-flow statistics generated by AMG Data Services Inc.

The weekly inflow nearly wiped out losses from the outflow of $1.043 billion that left the space in the week ended Oct. 31.

The weekly inflow came after High Yield ETFs saw a $1.09 billion inflow of cash on Wednesday, one of the largest daily inflows for high-yield ETFs on record, a market source said.

The week ended Nov. 7 marked the first billion-dollar inflow since the week ended Oct. 3.

The month of October was marked by several billion-dollar outflows.

Funds saw $2.364 billion of outflows for the week ended Oct. 24.

While funds saw inflows of $447 million for the week ended Oct. 17, the week was preceded by an outflow of $4.928 billion for the week ended Oct. 10.

The $4.928 billion outflow was the third largest outflow on record and the second largest outflow of 2018.

The largest weekly outflow on record is $7.1 billion seen in the week to Aug. 6, 2014, a market source said.

The second largest outflow on record and the largest of 2018 was the $6.3 billion that left the space in the week ended Feb. 14, 2018.

Funds saw inflows of $1.389 billion for the week ended Oct. 3, which pared losses from the $1.569 billion outflow in the week ended Sept. 26.

While funds have been mixed in September and October, inflows have been dwarfed by the outflows.

The cumulative outflow for the year now totals $24.433 billion, 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, the funds have seen five inflows and five outflows.

There have been 18 inflows and 27 outflows in the 45 weeks to date in 2018, according to the Prospect News analysis.

IG corporates see inflows

Among other asset classes, investment-grade corporate funds also saw inflows which pared its losses from last week.

Investment-grade funds saw inflows of $1.849 billion for the week ended Nov. 7.

Funds saw outflows of $3.753 billion for the week ended Oct. 31, the largest in recent history.

Funds saw inflows of $415 million for the week ended Oct. 25, after a modest outflow the previous week.

Investment-grade funds saw an outflow of $54 million for the week ended Oct. 17 after four consecutive weeks of inflows.

Investment-grade funds saw inflows of $1.222 billion for the week ended Oct. 3, $1.781 billion for the week ended Sept. 27, $1.02 billion for the week ended Sept. 19 and $3.217 billion for the week ended Sept. 12.

IG funds also saw an outflow of $297 million for the week ended Sept. 5.

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