U.S. corporate high-yield funds saw a $4.1 billion outflow in the week ending Aug. 7, according to Lipper weekly reporters, the biggest wave of weekly redemptions for those funds since last October.
A substantial amount of the loss was due to market changes, which accounted for just shy of $2.5 billion of the recorded decline.
The moving four-week average has dropped back into the negative, now hovering near $577 million worth of outflows, backtracking on the previous week’s net inflow of $595 million for the week ending July 31.
Both ETFs and mutual funds contributed to the decline, with ETFs recording a larger $2.5 billion outflow while funds saw around $1.6 billion in outflows.
Total assets in high-yield funds now total $206.7 billion, down from $213.3 billion last week. ETF assets now total $49.1 billion, down nearly $3 billion from the week prior but still making up 24% of the total market.
Year-to-date, retail funds in high-yield have recorded a net inflow of $11.1 billion.
Risk sentiment in markets turned sour at the end of last week and remained elevated at the beginning of the week, leading to a broad selloff of risk assets in both the equity and bond markets. Rising trade tensions, volatile stocks, and uncertainty over the path of interest rates may keep high-yield bond prices under pressure in the near term.
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