U.S. loan funds reported an outflow of $3.29 billion for the week ended Dec. 19, according to Lipper weekly reporters only. This is once again a record outflow for loan funds, easily surpassing last week’s $2.53 billion exit. Prior to that, the next largest outflow was back in August 2011 at negative $2.12 billion.
This is also the fifth consecutive week of withdrawals, totaling roughly $9.9 billion over that span. The four-week trailing average is now $2.05 billion, from negative $1.66 billion last week.
Mutual funds were tapped for a net $3 billion during the observation period, while a comparatively light $298.5 million was pulled from ETFs.
Outflows have now been logged in seven of the last nine weeks and that has taken the year-to-date total inflow to just $406 million, after cresting $11 billion in October.
The change due to market conditions last week was a decrease of $772.7 million, milder than last week’s $1.231 billion drop, which was the largest in four years. Total assets were roughly $95.3 billion at the end of the observation period and ETFs represent about 10% of that, at roughly $10.5 billion. — Jon Hemingway
LCD comps is an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.