J.P. Morgan’s weekly analysis of European high-yield funds shows a €232 million inflow for the week ended Nov. 20. This includes a €15 million net inflow to ETFs, and an €82 million net inflow for short-duration funds. The reading for the week ended Nov. 13 is unrevised from an inflow of €195 million. The latest reading is the eleventh consecutive weekly inflow.
The provisional reading for October is a €1.71 billion inflow, which is the eighth month this year for which net inflows have been recorded. Additionally, October is set to challenge January – when a €1.8 billion inflow was recorded – as the biggest month of the year for inflows. October’s reading is only the third €1 billion-plus monthly inflow this year, the other being July. The largest monthly outflow was €2.4 billion, tracked in June.
The latest estimate for total inflows this year through October is €5.3 billion, versus €4.6 billion for the comparable period last year.
Strong inflows are set to be matched by solid supply in the next few weeks, according to bankers. Already this week there are five borrowers set to issue, which is impressive given the week is set to be cut short by the Thanksgiving holiday in the U.S. A loan and bond refinancing for Tank & Rast is the only non-Italian deal this week, as Snai and Astaldi market pure high-yield deals, Finmeccanicaprepares its first deal as a fallen angel, and Beni Stabili hits the unrated space.
In the U.S., retail cash inflows to high-yield funds totalled $783 million for the week ended Nov. 20, according to Lipper, a division of Thomson Reuters. ETF inflows comprised 58% of the total, or $451 million. The positive reading expands on the week prior’s $219 million inflow, and marks the tenth inflow in the past 11 weeks. Inflows total $2.36 billion for the year to date, versus a modestly negative reading five weeks ago.
Retail cash inflows to bank loan mutual funds and exchange-traded funds totalled $726 million for the week ended Nov. 20, according to Lipper. That total is down from $829 million the week before, but up from $577 million two weeks ago. The solid inflow figure comes despite a $13 million outflow from ETFs during the sample period, just the third such outflow this year. The net inflow streak is now at 75 weeks, for an infusion of $56.9 billion over that period.
As reported, J.P. Morgan only calculates flows for funds that publish daily or weekly updates of their net asset value and total fund assets. As a result, J.P. Morgan’s weekly analysis looks at around 50 funds, with total assets under management of €10 billion. Its monthly analysis takes in a larger universe of 90 funds, with €27 billion of assets under management. For a full analysis, please see “Europe receives HY fund flow calculation.” – Luke Millar