Tag Archives: bank loans

Leveraged Loans Over High-Yield Bonds

As of July 5, 2018, the S&P/LSTA U.S. Leveraged Loan 100 Index returned 2% YTD, compared with the S&P U.S. High Yield Corporate Bond Index’s return of -0.29%. In 2018, U.S. high-yield performance has experienced two rather sizeable negative returns—back-to-back declines in February (-1.05%) and March (-0.45%)—followed by a turnaround in April (see Exhibit 1). Read more […]

Floating Rate Asset Classes

In the weekend Wall Street Journal (May 3, 2014) there is an informative article entitled “The Risks of Floating Rate Funds”.  The article does a great job of delving into the risks of these types of structures and is quite timely as the low rate environment continues. The investor appetite for floating rate assets while facing Read more […]

Senior Loans & High Yield Bonds

Duration is everything in a rising interest rate environment.  Senior loans, as tracked by the S&P/LSTA U.S. Leveraged Loan 100 Index are down 0.34% month to date. These floating rate below investment grade loans have seen their weighted average yield rise by 19bps since May month end.  Meanwhile, fixed rate high yield bonds tracked in Read more […]