Sunday, October 1, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Mutual Funds

Floating rate mutual funds have seen net inflows of $25 billion in 2021

MtR by MtR
June 24, 2021
in Mutual Funds
0
Floating rate mutual funds have seen net inflows of $25 billion in 2021


Investors are buying into corporate loan funds at a rapid clip — and that’s likely to continue as they position for a rising rate environment.

Why it matters: Interest on this type of debt, known as leveraged loans, goes up when rates go up — since it’s tied to benchmarks like Libor which can rise and fall.

  • Leveraged loans provide liquidity to below-investment-grade companies when they need cash. They’re also a crucial part of the financing for M&A and private equity buyouts.

What they’re saying: More investor demand for these loans will enable even more buyouts as PE firms look to deploy the mountains of dry powder they’re sitting on, Paul Raskin, senior analyst at Neuberger Berman, tells Axios.

The big picture: Floating rate mutual funds, a major buyer of leveraged loans, have seen net inflows of $25 billion this year, compared to outflows of about $25.5 billion in the same period last year, according to financial data provider EPFR.

  • The other major buyers of leveraged loans are structured vehicles known as CLOs (collateralized loan obligations), which are being issued at a feverish pace.

Of note: Also making leveraged loans attractive to investors right now are low default rates. Defaults by weaker companies were pulled forward last year during the pandemic, and they’re expected to be historically low over the next few years, Raskin says.

The bottom line: Expect the inflows to leveraged loan funds to continue for the foreseeable future.



Source link

Related articles

Will Investing In Mutual Funds Make You Rich?

Will Investing In Mutual Funds Make You Rich?

October 1, 2023
Suitable Investors and Investment Guidelines

Suitable Investors and Investment Guidelines

October 1, 2023

Related Posts

Will Investing In Mutual Funds Make You Rich?

Will Investing In Mutual Funds Make You Rich?

by MtR
October 1, 2023
0

In case you are a first-time reader, mutual funds is simply managing of investors money through investing it in stock...

Suitable Investors and Investment Guidelines

Suitable Investors and Investment Guidelines

by MtR
October 1, 2023
0

While mutual funds may be a great way to potentially grow your earnings, it could also help you save on...

A Comprehensive Guide to Mutual Fund Investment Lifecycle

A Comprehensive Guide to Mutual Fund Investment Lifecycle

by MtR
September 30, 2023
0

Mutual funds (MFs) are one of the most preferred investment products by retail investors due to benefits such as diversification,...

Mutual funds to mandatory PAN, Aadhaar for small saving schemes: Top 5 financial changes from next month

Mutual funds to mandatory PAN, Aadhaar for small saving schemes: Top 5 financial changes from next month

by MtR
September 30, 2023
0

Personal finance changes from next month: With the beginning of October month, one would be entering into new quarter as...

How 20% TCS will impact your foreign stock holdings, crypto from October 1

How 20% TCS will impact your foreign stock holdings, crypto from October 1

by MtR
September 30, 2023
0

If you are thinking in investing in foreign stocks, mutual funds or cryptocurrencies abroad, be aware that you will have...

Load More
  • Trending
  • Comments
  • Latest
Bank of England tells ministers to intervene on digital currency ‘programming’

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021
Tips for checking smoke alarms during daylight saving time

Tips for checking smoke alarms during daylight saving time

March 12, 2022
GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
What will Durham County education bonds pay for? A full list

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0
Canada’s economy stalled in July as previous rate hikes took hold

Canada’s economy stalled in July as previous rate hikes took hold

October 1, 2023
Nifty October series outlook: 4 stocks where investors can park their money; do you own?

Nifty October series outlook: 4 stocks where investors can park their money; do you own?

October 1, 2023
NRB issuing development bonds worth Rs 13.10 billion today

NRB issuing development bonds worth Rs 13.10 billion today

October 1, 2023
Financially Independent Stock Trader Shares Biggest Investing Mistake

Financially Independent Stock Trader Shares Biggest Investing Mistake

October 1, 2023

Recent News

Canada’s economy stalled in July as previous rate hikes took hold

Canada’s economy stalled in July as previous rate hikes took hold

October 1, 2023
Nifty October series outlook: 4 stocks where investors can park their money; do you own?

Nifty October series outlook: 4 stocks where investors can park their money; do you own?

October 1, 2023
NRB issuing development bonds worth Rs 13.10 billion today

NRB issuing development bonds worth Rs 13.10 billion today

October 1, 2023

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter