Investors Pull Cash From CLO ETFs in Biggest Outflow Since April

Exchange-traded funds that hold bundles of corporate loans last week notched their first outflows since April, in the latest sign that investor concerns over credit quality are mounting.

ETFs of collateralized loan obligations experienced an outflow of about $516 million last week, marking the first investor exodus in about six months, analysts at JPMorgan Chase & Co. led by Rishad Ahluwalia wrote in a Monday report. That compares to a weekly average of about $421 million of inflows over the past year, according to the analysts.

Credit investors have turned more cautious after the implosions of auto lender Tricolor Holdings ...