Lipper-FMI fund flow data - Week ended May 15

Confirmed downturn in US HY fund net inflows, with $2.57bn net outflows seen over the past week. This is in line with the spread-widening trend observed in $HY spreads this week (+18bp in OAS), reflecting higher risk aversion on the back of the renewed trade tensions between US and China. The rebound in US equities since 13 May and the decline in equity volatility has, so far, not been reflected in the appetite for US HY. Meanwhile, US IG funds continued to receive net inflows, by $2.2bn over the past week, despite volatile market conditions. As a consequence, US IG spreads actually resisted better than their HY counterparts (corrected from beta), with only 3bp of widening vs OAS of the former . Leveraged loan fund withdrawals continue for the 2 5 th consecutive week leading to YtD net outflows of $1 3 . 4 bn