US High Yield Funds Show Outflow of $4.03 Billion; 2022 releases reach $26.07 billion
High-yield U.S. retail funds reported an outflow of $4.03 billion for the week ending April 13, following back-to-back inflows in the previous two weeks, according to Lipper. The latest outflow – the second largest so far in 2022, compared to a slightly larger outflow of $4.04 billion for the week to February 2 – left the four-week moving average at $1.3 billion. negative dollars, compared to negative $702 million the previous week.
Lipper has now reported high-yield cash outflows in 12 of the 15 weeks so far in 2022, leaving total year-to-date net outflows at $26.07 billion. That’s roughly double last year’s $13.03 billion in releases, and compares to $38.3 billion in admissions for all of 2020.
The latest weekly reading reflected outflows of $1.28 billion from mutual funds and $2.75 billion from ETFs. Year-to-date outflows from these categories now stand at minus $10.3 billion and minus $15.8 billion, respectively.
Lipper’s weekly reporter assets fell to a 2022 low of $246.2 billion as of April 13, including $61.6 billion in ETFs, or 25%. At the final 2021 valuation, assets totaled $282.4 billion, with 29% in ETFs, or $81.3 billion.
Investors pulled money out of funds amid another tough week in fixed income asset markets, as the 10-year Treasury yield this week tested levels last seen at the end of 2018. For the Weekly Reporters asset pool, the change in valuation due to market conditions was negative $1.96 billion for the last week, in addition to a negative change of $1.43 billion. dollars compared to the previous week. The year-to-date net change due to market conditions was negative $14.7 billion through April 13, wiping out a positive net change of $14.3 billion for the entire 2021.
For context, the dollar price of the S&P US High Yield Corporate Bond Index stood at 95.06% of par at the April 13 close, down more than a point from 96.15. the previous week, and against 103.93 on December 31, 2021. The mid-close at 94.95 on April 11 marked a low since May 2020. The last level of supply resulted in a worst-case yield at 6 .39% (vs. 6.18% a week earlier and 4.22% at the start of the year) and an option-adjusted spread. T+359 (compared to T+331 a week earlier and T+299 at the start of the year).