uploads///US Leveraged Loans Flows

Leveraged Loan Funds Witness Back-to-Back Inflows


Nov. 20 2020, Updated 3:48 p.m. ET

CLO deals

According to S&P Capital IQ/LCD, two CLO (collateralized loan obligation deals worth $783.9 million got priced last week. Meanwhile, in the previous week, two CLO deals were priced for the total volume of $828.5 million. YTD (year-to-date), CLO issuance stands at $5.4 billion from 13 deals. In 2015, CLO deals worth $92.1 billion were struck through 176 deals.

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Leveraged loan funds saw inflows again

According to data from Lipper, leveraged loan funds saw an inflow for the second consecutive week. The quantum of inflows came in at $176 million last week. In the previous week, leveraged loan funds saw small inflows of $55 million. With the inflows last week, the total net outflows from leveraged loan funds stood at $4.6 billion as of March 16, 2016.

In comparison, high-yield bond funds recorded inflows of $1.7 billion and equity funds recorded outflows of $2.1 billion, respectively, last week. Equity funds witnessed inflows of $4.6 billion in the previous week.

Senior loans are tracked by mutual funds such as the Oppenheimer Senior Floating Rate Fund – Class A (OOSAX) and the Fidelity Advisor Floating Rate High Income Fund – Class A (FFRAX). Investors can take exposure in senior loans through ETFs such as the Invesco PowerShares Senior Loan Portfolio (BKLN) and the Highland/iBoxx Senior Loan ETF (SNLN).

Leveraged loan issuance jumped last week. ON Semiconductor Corporation (ON), Sears Holdings (SHLD), Windstream Holdings (WIN), and Imagine Print Solutions were the issuers of leveraged loans last week.

In the previous week, HCA Holdings (HCA) was the sole issuer of leveraged loans.

Returns on leveraged loans

Returns on leveraged loans rose in the week ending March 18. The S&P/LSTA U.S. Leveraged Loan 100 Index rose 0.8% from a week ago. The index rose by 2.4% YTD. Meanwhile, the Hartford Floating Rate Fund – Class A (HFLAX) provides exposure to senior loans. It rose 0.7% week-over-week. YTD. HFLAX has been flat. The Invesco PowerShares Senior Loan Portfolio (BKLN), which also provides exposure to senior loans, rose by 0.8% week-over-week. It rose by 1.4% YTD.

For more mutual funds analysis, visit Market Realist’s Mutual Funds page.


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