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.
- Experienced, Global Team – dedicated team with over 15 years’ 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.
“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
Feb 22, 2022
Against a backdrop of economic recovery but the prospect of rising interest rates, where can credit investors look for yield while protecting themselves from interest rate risk?
May 25, 2021
As interest rates trend higher, should investors consider an allocation to syndicated loans?