(Reuters) – Investors put cash to work in company credit score markets within the newest week, with U.S.-based investment-grade company bond funds attracting about $three.47 billion within the week ended on Wednesday, the group’s 11th consecutive weekly inflow, in accordance with Refinitiv’s Lipper analysis service knowledge on Thursday.
Appetite returned for his or her fairness counterparts. U.S.-based fairness funds attracted over $four.27 billion within the week ended on Wednesday, reversing the earlier two weeks of money withdrawals totaling about $15 billion.
Tom Roseen, head of analysis providers at Lipper, famous that whereas fairness exchange-traded fund (ETF) flows remained solidly constructive at over $10.three 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 characterize the institutional investor, together with hedge funds. Mutual funds are thought to characterize retail buyers. “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 loved one other week of demand, because of Federal Reserve officers’ pledge to be affected person in elevating rates of interest this yr.
U.S.-based taxable bond funds attracted over $four.eight billion within the week ended Wednesday, extending their weekly inflow streak since March. U.S.-based high-yield bond funds attracted about $655 million for the week ended Wednesday, their fifth consecutive week of inflows, Lipper stated.
“The Federal Reserve’s dovish tone in its March meeting minutes along with tame wage growth numbers and news that the IMF lowered its outlook for global economic growth to 3.3% for 2019 were boons for longer-dated bond securities,” Roseen stated. “Investors were betting that neither the Fed nor other central banks were likely to hike rates anytime soon.”
Reporting by Jennifer Ablan; Editing by James Dalgleish