Yahoo Finance US Leveraged Loan Funds See Biggest Weekly Inflows in Two Years
(Bloomberg) -- Funds that invest in US leveraged loans took in $2.04 billion of cash for the week ended May 8, as markets received a boost from Federal Reserve Chair Jerome Powell’s recent comments on the central bank’s interest rate path.
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The haul of more than $2 billion is the biggest since April 2022 and the fifth largest on record, according to LSEG Lipper data. High-yield and investment-grade bonds also saw notable inflows, coming in at $2.35 billion and $931 million, respectively, according to the data. Flows into high-yield bond funds were the highest since November, the data show.
Risk assets got a boost last week after Powell indicated that the central bank’s next move would likely not be an interest rate hike and softer-than-expected employment data added to speculation that rates could move lower some time this year.
Market confidence has been high this week, with a deluge of deals in investment-grade and high-yield launching globally. Borrowers that had a hard time accessing the markets not that long ago were able to price deals in a day.
Average loan prices closed at a two-year high Wednesday of 96.86 cents on the dollar, according to the Morningstar LSTA Leveraged Loan Price Index. Borrowers have found room to reprice their existing obligations, scoring millions in cost savings.
--With assistance from Christopher DeReza and Jeannine Amodeo.
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