Personal Finances and Loans Solutions » money advice http://www.personal-finances-advisor.com Make your financial advice personalized Fri, 14 May 2010 13:47:04 +0000 en hourly 1 http://wordpress.org/?v=3.0 The flows of pension funds and payday loans /the-flows-of-pension-funds-and-payday-loans/ /the-flows-of-pension-funds-and-payday-loans/#comments Wed, 11 Nov 2009 11:17:34 +0000 admin http://www.personal-finances-advisor.com/?p=61 98Fund flows measure the amount of money that comes into or leaves the open-ended mutual funds during a given period. Coupon payments are not included. The flows of pension funds, hedge funds and insurance companies are not tracked in this number. Nevertheless, there is a high correlation between high-yield market total returns and mutual fund flows. The reason is that mutual funds account for a big part of secondary trading.

During a period of high market uncertainty and increasing negative event risks the correlation with equity markets tends to rise. Fund flows in the high-yield market are directly related to the developments in the equity market.

Fund Flows are a function of:

  • Expected risk
  • Interest rates
  • Inflation
  • Default rates
  • Economic outlook
  • Event risk
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