Sixth Weekly High Yield Outflow Leads To New All Time Consecutive Redemption Record Of $4.6 Billion

[Joanne98]

Lipper/AMG has announced the most recent fund flow number: in the past week high yield funds saw a $310 million outflow, bringing total year to date flows to ($365) million. This is the sixth consecutive weekly outflow and brings total cumulative withdrawals for the period to $4.6 billion - a new all time record, even worse than the 2003 inactivity stretch. In percentage-of-assets terms this translates into 4.9%, the largest such figure in five years. And after running a $5 billion YTD surplus earlier in the year, this has all now been reversed. Elsewhere, inflows were seen in loans (+$95mn) and HG bonds (+1.2bn), whereas EM debt and developed equities saw outflows of $70mn and $2.8bn respectively. Money Markets continue to bleed, with $1.3 billion in outflow in the past week. So far in 2010 MMs have lost 13% of their entire asset base. The delta between MM outflows and all other risk asset inflow is now $113 billion.

http://www.zerohedge.com/article/sixth-weekly-high-yield-outflow-leads-new-all-time-consecutive-redemption-record-46-billion

[westerebus]

1. People are voting with their funds.

Hoarding cash?

[metapunditedgy]

2. In my unfortunate experience, "high yield" has been a code word for "junk."

"High yield" is not the place to be if you think another credit crunch is coming.

[pscot]

3. Any idea how the big consumer funds

like Vanguard and Fidelity are holding up. I know they attract a lot of 401k money.