Quotes from the news wire:
Loan funds have floating rates. So, a rising interest-rate environment is good for them, therefore the Fed's actions have hurt this classification while helping the fixed-rate investment grade classifications.
Found on Reuters 5 years ago
Domestic equity mutual funds were responsible for the lion's share of the net outflows at negative $2.6 billion, this is the continuation of a long-term trend as the group has had 22 straight weeks of net outflows for a total of -$87.1 billion.
Found on Reuters 5 years ago
Money is taken out of play like this, particularly in stocks, during times of uncertainty, federal Reserve chairman Jerome Powell has pointed to the current uncertainty multiple times in the recent past with respect to the U.S.-China trade war, global growth concerns and the still tepid inflation data.
Found on Reuters 5 years ago
This coupled with the large net inflows into money markets over the last two weeks indicates to me that there is a lot of uncertainty in the market, driven mainly by the U.S-China trade tensions.
Found on Reuters 5 years ago
This represents the 2nd and 3rd highest of the year for the group and highest since January 30 with investors withdrawing about $14.6 billion.
Found on Reuters 5 years ago
Not surprising to see the large net outflows from them as it aligns with market performance and the negative flows from equity funds, the high-yield results were the main reason that taxable bond mutual funds suffered a weekly net outflow this week of $263 million, which broke a streak of 17 straight weekly net inflows.
Found on Reuters 5 years ago
I would expect the recent round of positive data - retail sales data hitting its highest level in 18 months, unemployment claims at its lowest level in almost 50 years, and solid corporate earnings results - should carry the equity markets and pull high yield-debt along for the ride.
Found on Reuters 5 years ago
This bears watching; I would suspect the negative flows from high yields is more of a one-week aberration than the reversal of the current trend.
Found on Reuters 5 years ago
High-yield funds did suffer net outflows, but the lion's share of those outflows came from one ETF.
Found on Reuters 5 years ago
The flip in investor sentiment regarding high-yield funds can be seen in the group's fund-flows results, as they had net outflows of $20.7 billion in Q4 - second worst quarterly net outflow ever - and they have taken in $14.3 billion in net new money in Q1 - the second best quarterly net inflow ever.
Found on Reuters 5 years ago
Bond funds in general took off ... when the Federal Reserve announced that it was taking its foot off the brakes - no more rate hikes until inflation warrants it and the balance sheet reduction program would be ending.
Found on Reuters 5 years ago
Unlike the rest of the fixed-income universe, it is a negative for loan funds when the Fed holds rates static - or decreases rates, this is because loans have floating rates that benefit from interest rate hikes.
Found on Reuters 5 years ago
This was the second straight net outflow for equity mutual funds after six straight net inflows, the net outflows for equity mutual funds were across the board as the majority of peer groups saw money leave, both for domestic and nondomestic funds.
Found on Reuters 5 years ago
It was a good week overall, net inflows just shy of $16 billion with all four asset groups - money markets, taxable bond funds, muni bond funds, and equity funds - taking in net new money.
Found on Reuters 5 years ago
It was the taxable bond funds group's seventh straight weekly net inflow, ultra-short obligation funds (USO) drove the overall positive net flows for the group as they took in $1.47 billion. This is the continuation of a long-term trend as USO funds have had net inflows in 50 of the last 51 weeks for a total intake of over $69 billion.
Found on Reuters 5 years ago
I think this is a function of the uncertainty we see in the markets caused by the trade tensions/potential trade war.
Found on Reuters 6 years ago
People are looking for yield, it's a bull market, but a bull market without much enthusiasm.
Found on Reuters 8 years ago
This was the largest positive weekly net inflow of the year coming in at over twice that of the $16.6 billion net inflow for the fund-flows week ended January 27, 2016, of note, equity funds broke a 10-week streak of net outflows by taking in $7.8 billion in net new money and municipal bond funds recorded their 41st straight week of inflows as they grew their coffers by $1.2 billion.
Found on Reuters 8 years ago
There's money on the sidelines, we're getting mixed messages.
Found on Reuters 8 years ago
Investors may be hedging their bets a little with corporate earnings.
Found on Reuters 8 years ago
It’s a risk-off and it is a flight to safety, investors may be hedging their bets a little with corporate earnings.
Found on Reuters 8 years ago
It was different this week from a long-term trend, the long-term trend has been money leaving domestic and going into non-domestic (stock funds), and this week we saw money leaving both.
Found on Reuters 8 years ago
The Federal Reserve continued to jawbone the market with additional hawkish comments about the potential for an interest rate hike in December.
Found on Reuters 9 years ago
For the lion's share of the year, money was coming out of domestic equity funds, this could be a reversal of that trend.
Found on Reuters 9 years ago
It was a good week for the markets, there was a lot of positive news in the equity markets.
Found on Reuters 9 years ago
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