U.S. LEVERAGED LOAN FUNDS LOSE CASH AT FASTEST PACE EVER
MATA: DRIVERS - CREDIT
12-13-18 - Bloomberg - "U.S. Leveraged Loan Funds Lose Cash at Fastest Pace Ever"
- U.S. leveraged loan funds saw $2.53 billion of net outflows in the week ended Dec. 12, the biggest decline on record
- U.S. leveraged loans saw $1.04 billion in fund outflows for the week ended Dec. 5 after $1.32 billion of outflows the previous week
Investors pulled $1.82 billion from Mutual Funds that buy the debt, according to Lipper,
ETFs saw outflow of $705 million in the week, Lipper data showed,
- Fears have left investors willing to take few risks heading into year-end. That has disrupted issuance of the debt, with several offerings shelved. Fears of:
- Slowing global growth,
- Rrade-war tensions and
- Slumping energy prices have left investors willing to take few risks heading into year-end. That has disrupted issuance of the debt, with several offerings shelved.
- Fund outflows and waning demand from collateralized loan obligations (CLOs), the biggest loan buyers, are adding pressure.