Investors are still pulling money out of corporate credit markets despite the relief rally. High-yield bond exchange-traded funds and mutual funds saw outflows of about $1.45 billion on Wednesday, while leveraged-loan fund outflows were about $500 million, according to research by JPMorgan Chase.
The bank estimates bring the one-week total of outflows to $9.4 billion for junk-bond funds and $6.4 billion for junk-rated-loan funds. That eclipses the previous records of $7.1 billion from the bond funds in August 2014 and $3.45 billion out of the loan funds in March 2020.
Selling out of the funds continued this morning with a widely tracked iShares high-yield ETF dropping more than 1% and a Janus loan ETF down almost 1%. Demand for collateralized loan obligation, or CLO, ETFs has been comparatively good and an Eldridge fund that buys lower-rated CLOs fell roughly 0.5%.