Lipper-FMI fund flow data - Week ended October 10

Outflows dominating this week, in line with the selloff in equities: US HY bond funds suffered their biggest outflow since Feb 2018 (-$4.9bn !) and the 4 th biggest weekly outflow of all time, according to Lipper. Given the amplitude of the outflow, one can wonder if the correction seen in US HY spreads will not become bigger (30bp widening “only”)… US IG funds also posted net outflows during the past week ($360mn) , contributing, although modestly, to the $6bn outflows seen in taxable bond fun ds. EM debt funds surprisingly displayed net inflow this week, while Money Market funds obviously benefited from the flight to quality trend with a net inflow of more than $20bn.