Loan Funds See Inflows Following Steady Stream of Redemptions

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Retail investors have returned to loan funds following two months of net redemptions. The Invesco Senior Loan ETF (BKLN) recorded $265m in inflows this month through April 21, a reversal from the $125m in outflows the fund experienced in March, and a far cry from the exodus that took place in February when $948m was pulled by investors.

After beginning the year at an average price of 96.93, secondary market loan pricing declined to 94.60 on March 3 before rebounding to 95.39 by April 20, according to the Bloomberg US Leveraged Loan Index. Year-to-date the index has delivered a return of 0.30%.