Lipper-FMI fund flow data - Week ended May 8

Despite the correction observed in US stock markets over the past week (-2.6% for the S&P 500), with the VIX index climbing to 19% from 13% at the end of last week, inflows in US IG funds have remained (so far) very resilient, with another weekly inflow of $3.3bn for the week ended May 8. On the other hand, US HY bond funds saw an outflow of $212mn, a reversal from last week’s positive inflow (albeit limited at +$21mn). This second weekly outflow in 3 weeks confirms in our view the bottoming out of $HY spreads (minimum of OAS+372bp reached April 23), all the more as the US-China trade ware climate becomes much more uncertain after the US effectively raised tariffs on $200bn of Chinese goods to 25% from 10% yesterday night . Leveraged loan fund withdrawals continue for the 2 4 th consecutive week leading to YtD net outflows of $12.9bn… although outflows seen in HY funds this week outpace lev . loans fund outflows .