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January 2021 / VIDEO

Three Reasons to Favor Floating Rate Loans in Today's Market

Key Insights

  • Our asset allocation committee is overweight to floating rate loans because they offer certain potential advantages in today’s market.
  • Loans’ shorter duration profile would likely offer some degree of insulation from higher interest rates, and while they are subject to higher credit risk, they could offer risk-adjusted access to high yield issuers. 
  • Leveraged loans also offer favorable relative value over other high yielding investments.


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