Global Credit Comment:US and EU Fund Flows Report

US: Strong inflows into IG and Domestic Equities; HY flows turn negativeIG continued its strong inflow streak with $3,045mn ($1,421mn of inflows into ETFs),from $2,566mn of inflows in the previous week. HY flows reversed to $240mn ofoutflows ($172mn of outflows from ETFs) from $726mn of inflows in prior week.

    Leveraged Loans inflows fell marginally to $757mn from $853mn in previous week.

    Domestic equity inflows accelerated sharply to $6,499mn ($7,861mn of inflows intoETFs), vs. $1,389mn last week. Non-domestic equities inflows fell to $785mn ($738mnof inflows into ETFs), from $1,355mn of inflows in the previous week. EM Equities andEM HC Debt reported inflows of $692mn and $250mn, respectively. Prime moneymarket funds reported outflows of $1,104, contrary to $2,583mn of inflows a weekago. Government money market fund flows reversed as well switching to $4,779mn ofoutflows from $1,382mn of inflows prior week. Treasuries posted inflows of $122mn,while Mortgages saw outflows of $302mn.

    Europe: IG ETFs and Equity ETFs see outflows, HY ETFs see inflowsFor the week ending Mar 1st, European IG ETF registered outflows of ?32mn (vs. lastweek's inflows of ?137mn) and European HY ETF posted inflows of ?16mn, from lastweek's inflows of ?87mn. Equities ETF flows reversed direction, switching to ?68mn ofoutflows from ?186mn of inflows in the prior week. YTD, European IG has registeredoutflows of ?945mn (3.1% of AUM), while European HY reported inflows of ?97mn(1.3% of AUM) and European equity ETFs saw inflows of ?1,181mn (2.1% of AUM).