Syndicated bank loans, with their floating rate characteristics, may offer attractive returns with downside protection, particularly in an environment where there is concern about rising interest rates. Our syndicated loans strategies are focused on the senior secured part of the capital structure where we believe the risk-reward proposition is the most attractive. Whilst benchmark aware, the strategies are unconstrained, enabling the team to express conviction on credit views.
- Experience – dedicated team with significant experience spread between New York and London to best cover issuance and trading in major global jurisdictions
- Focus on Downside Protection – the senior position and first-lien security of senior secured loans could enhance recovery in a downside scenario
- Low Default Rate – an emphasis on fundamentally-driven credit selection, combined with active monitoring and trading, could help keep defaults to a minimum
Capital at risk. The value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the full amount invested. Past performance is not an indication of current or future performance.
Lessee Credit Risk: Credit risk, changes to interest rates and/or issuer defaults will have a significant impact on the performance. A default, or credit impairment of any of the investments could result in a significant or even total loss of the investment.
“Syndicated loans may offer attractive floating rate returns with downside protection, providing a solution which sits between high yield bonds and private debt”
Torben Ronberg, Head of Syndicated Loans
Sep 13, 2023
Please click to view our latest Asset Allocation Group video update for the month of September 2023.
Jul 06, 2023
While credit markets have performed relatively well year to date, the macroeconomic backdrop, inflation and the reaction function of central banks remains uncertain. Mike McEachern discusses his thoughts on the key macro themes influencing credit markets and how he is positioning his multi-asset credit strategies to navigate this uncertain environment.
Jun 28, 2023
A rising interest rate environment, limited new issue supply and improving lending standards are likely to prove beneficial for the asset class, offering investors a potentially compelling entry point.