Lipper-FMI fund flow data - Week ended February 07

Biggest inflow in US HY funds since July 2016 with almost $3.9bn… leading to the best start of the year after 6 weeks since 2012, with a cumulative $7.4bn net inflow YtD ! However, it is worth noticing that despite those tremendous inflows, US HY spreads have stopped their tightening trend since mid January , probably because of the tight valuations reached in light of the expected increase in default rates. Meanwhile, leveraged loan funds continue to post significant outflows week after week: YtD , they have posted $6.2bn outflows, partially offsetting the net inflows seen in US HY funds. IG-wise, a recovery seems under way, with $2.7b net inflows this week, although the YtD figure is still negative.