Junk mutual funds, ETFs add $346 million for week ended Aug. 14

By Abigail W. Adams

Portland, Me., Aug. 15 – 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 $346 million for the week ended Wednesday, according to fund-flow statistics generated by AMG Data Services Inc.

The inflow broke a two-week stretch of outflows, which included the largest outflow year-to-date.

Funds saw an outflow of $4.07 billion for the week ended Aug. 7. It was the first time outflows have topped $4 billion in 2019 and only the second time outflows have exceeded $3 billion.

The previously largest outflow of 2019 was the $3.22 billion that left the space in the week ended June 5.

Prior to Aug. 7’s record-breaking outflow, funds saw a modest $115 million outflow for the week ended July 31.

The recent outflows were preceded by a seven-week stretch of consecutive inflows.

Funds saw $1.31 billion enter the space for the week ended July 24, $573 million for the week ended July 17, $619 million for the week ended July 10 and $802 million for the week ended July 3.

Funds saw a substantial inflow of $3.09 billion for the week ended June 26, marking the third time inflows have topped $3 billion in 2019.

Prior to that, funds saw an inflow of $602 million for the week of June 19 and an inflow of $1.72 billion for the week ended June 12.

Cumulative fund flows in 2019 now stand at $12.09 billion for the 32 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 23 inflows and nine outflows in the 32 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 $4.03 billion for the week ended Wednesday.

The inflow was the second consecutive week of billion-dollar plus inflows with $2.8 billion entering the space for the week ended Aug. 7.

The inflow was preceded by a modest outflow of $62 million for the week ended July 31.

Prior to the outflow, high-grade funds saw an eight-week stretch of inflows.

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