U.S.-based investment-grade bond funds extend 2019's weekly inflow streak


(Reuters) – Investors put money to work in corporate credit markets in the latest week, with U.S.-based investment-grade corporate bond funds attracting about $3.47 billion in the week ended on Wednesday, the group’s 11th consecutive weekly inflow, according to Refinitiv’s Lipper research service data on Thursday.

Appetite returned for their equity counterparts. U.S.-based equity funds attracted over $4.27 billion in the week ended on Wednesday, reversing the previous two weeks of cash withdrawals totaling about $15 billion.

Tom Roseen, head of research services at Lipper, noted that while equity exchange-traded fund (ETF) flows remained solidly positive at over $10.3 billion, “conventional equity funds investors remained net redeemers for the week, pulling out $6 billion for the week.”

Investors in exchange-traded funds are thought to represent the institutional investor, including hedge funds. Mutual funds are thought to represent retail investors. “Despite plus-side returns for most of the broadly followed U.S. indices, investors remained cautious after learning February factory orders fell more than economists expected and ahead of the start of the Q1 2019 earnings reporting period,” Roseen added.

Fixed-income funds enjoyed another week of demand, thanks to Federal Reserve officials’ pledge to be patient in raising interest rates this year.


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