TREE NEWS reports: US leveraged loan funds took in $1.3 billion in the week to September 23, the largest weekly inflow since February 19, 2025. The gain marked a 13th consecutive week of inflows, the longest run in a year. The Federal Reserve raised interest rates the previous week.
US Leveraged Loan Funds Draw $1.3B Weekly Inflow, 13-Week Streak
A 13-week inflow streak into leveraged loan funds, landing right after a Fed rate hike, suggests yield-seeking demand is still overriding credit-quality concerns. The timing is notable: floating-rate loans typically benefit from higher rates, so this may reflect a deliberate rotation rather than broad risk appetite. What matters next is whether the streak survives if the rate path shifts or default signals emerge — the length of the run itself becomes the vulnerability.
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