Executive Summary

• Following the news of the ceasefire in Iran, fixed income ETF flows on Wednesday were mixed as UST ETFs lost assets while HY corporate ETFs had their best one-day total in more than 9 months. Equity ETFs had net new asset flows of $13.6 bn, an 11-day high.
• For the four-day week ended on Wednesday, April 8, net flows into fixed income ETFs were down 14% WoW to $6.0 bn. Flows into muni ETFs increased as HY corporate and HY muni ETFs turned positive, while flows into UST and IG corporate ETFs slowed down and the pace of outflows from agg ETFs slowed down.
• For the week ended Wednesday, April 1, IG corporate bond mutual fund outflows were revised sharply lower to -$11.8 bn, the worst weekly net outflow in 51 weeks. HY corporate and muni mutual fund flows were also revised lower.
• ETF PODCAST: Decoding the Mechanics of ETFs for Bond Investors. In this episode of the CreditSights Know More. Risk Better. podcast, the discussion unpacks the mechanics, growth, and practical use of fixed income ETFs in today’s credit markets. Winnie Cisar is joined by Pat Luby for an ETF 101 conversation covering why ETFs have gained traction, how fund flows and price discovery work, and the roles of liquidity, tax efficiency, and authorized participants. Details and the link are below.