The Case for Non-Traditional Fixed Income in Every Rate Environment

In this case study we will take a close look at the large, liquid and mature $1.2 trillion U.S. senior secured corporate loan market. In this study, we present our case for loans in every rate environment.

A decade of headlines have been written offering unknowledgeable opinions, selective facts and ultimately, an incomplete picture of the loan asset class. This is at a time when investors are rightfully seeking more information and solutions on how to navigate an unprecedented landscape of historically low interest rates and yields.

The mismatch between retirement assets and income is only getting worse as the headwinds of secular challenges grow. One of the key messages that has been inaccurately communicated to retail investors time and time again is that senior secured loans, given their floating rate nature, only perform when interest rates are increasing. Fake news! As is often the case, opinion and emotion are ubiquitous while facts and analysis can be difficult to find.