uploads///US Leveraged Loans Flows

Leveraged Loan Funds Witnessed a Small Outflow Last Week


Nov. 20 2020, Updated 3:17 p.m. ET

CLO deals

According to S&P Capital IQ/LCD, two CLO (collateralized loan obligation) deals worth $835 million were priced last week. Meanwhile, no CLO deals were priced in the previous week. The CLO issuance stands at $8.4 billion YTD (year-to-date).

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Leveraged loan funds saw outflows last week

According to data from Lipper, leveraged loan funds saw outflows for the third consecutive week. The quantum of outflows came in at $73 million last week. In the previous week, leveraged loan funds saw outflows of $262 million. With the outflows last week, the total net outflows from leveraged loan funds stood at $5.1 billion as of April 13, 2016.

In comparison, high-yield bond funds recorded inflows of $85 million and equity funds recorded outflows of $4.8 billion, respectively, last week. Equity funds witnessed inflows of $3.1 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).

Leverage loans issuance rose last week. Samsonite International SA, Quorum Health, Atlantic Power (AT), and Pinnacle Entertainment (PNK) were some of the issuers of leveraged loans last week.

In the previous week, MGM Growth Properties—the limited liability company of MGM Resorts International (MGM), Diebold (DBD), Numericable SFR, and TruGreen issued leveraged loans. To learn more, read High Yield Primary Bond Market Saw Highest Year-to-Date Issuance.

Returns on leveraged loans

Returns on leveraged loans rose in the week ending April 15. The S&P/LSTA U.S. Leveraged Loan 100 Index rose 0.7% from a week ago. The index is up by 3.6% YTD. Meanwhile, the Hartford Floating Rate Fund – Class A (HFLAX) provides exposure to senior loans. It rose 0.5% week-over-week. HFLAX has risen 2.4% YTD. The Highland/iBoxx Senior Loan ETF (SNLN) also provides exposure to senior loans. It rose by 0.4% week-over-week. It has risen by 3.2% YTD.

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


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