U.S. Loan Funds Receive Strongest Weekly Inflow of $927 Million

Investors poured a record $927 million into U.S. loan funds this week, according to Bank of America Corp. (BAC)

Deposits into mutual funds targeting floating-rate debt increased $3.3 billion, or 4.4 percent, last month which is the most of all other asset classes in percentage terms, the Charlotte, North Carolina-based bank said in the report.

Loans returned 10.5 percent last year while speculative- grade bonds gained 15.6 percent, according to Standard & Poor’s/LSTA U.S. Leveraged Loan 100 and Bank of America Merrill Lynch index data. This is the 33rd straight week of money flowing into loan funds as investors seek shelter from a possible increase in interest rates, according to Bank of America.

Leveraged loans are those rated below BBB- by Standard & Poor’s and less than Baa3 at Moody’s Investors Service.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.