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US Leveraged Loan Funds See $606M Withdrawal as Outflow Streak Hits 17 Weeks

Retail investors withdrew $606 million from U.S. loan funds during the week ended March 13, the seventeenth straight outflow for a total of $21.8 billion over that span, according to Lipper.

Loan Fund Flows - US

The withdrawal is the largest in four weeks, halting a short trend of dwindling outflows, including a small $33 million retreat two weeks ago.

Mutual funds were the main culprit this week, with a $503 million net outflow, while loan ETFs saw a $103 million withdrawal. The change due to market conditions during the week was a negative $125 million. The four-week average is now a $410 million outflow.

Year to date, including the week ended Jan. 2, retail investors have withdrawn a net $8.3 billion from U.S. loan funds (that’s nearly the opposite number for U.S. high-yield funds, which so far in 2019 have booked a net inflow of $8.2 billion, by the way).

Assets at the loan funds now total $86 billion, of which $10 billion come via ETFs, according to Lipper.

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