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Weekly Market Summary
Dec 29, 2025 to Jan 2, 2026
Extra Credit*
- After investors piled $4.73 billion into high-yield (HY) retail funds over four straight weeks of inflows (Nov. 20–Dec. 17), Morningstar reported a moderate $326 million outflow for the Dec. 18–24 period. Outflows from ice-cold mutual funds this week (negative $453 million) offset a $127 million inflow to red-hot ETFs.
- 2025, net flows for high-yield retail funds stand at $18.08 billion, following inflows of $30.27 billion last year. That’s offset by cumulative outflows of more than $37 billion from 2021–2023.
- After the biggest third quarter for HY issuance ($118 billion) since 2020, the steady flow of late-year deals produced the largest fourth-quarter output ($65 billion, Oct. 1–Dec. 15) since a slightly higher total ($70 billion) in the last quarter of 2021. It was even higher in 2020 ($96 billion).
Pitchbook as of 12/31/2025
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
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