Lipper-FMI fund flow data - Week ended November 7

After the heavy outflows seen in most credit funds the week before, investors came back : they added $117mn to loan funds after the $1.5bn outflow experience the week before, while US HY funds totally offset the previous $1bn outflow. However, it is worth noticing that US IG funds only retraced half of the previous week’s outflows (see table below), therefore showing once again a negative correlation with US LT rates (see chart opposite). On the other hand, US-based stock funds faced $8.5b n outflows , the most in 3 weeks, despite mid-term election results being in line with market expectations. EM debt funds also posted net outflows again, after $223mn outflows the week before.