Tag Archives: bank loans
As ETF Fund Flows Surge, Don’t Fight the Fed’s Passive Investing Philosophy
Investing legend Marty Zweig famously declared, “don’t fight the Fed.” With the Fed now buying fixed income ETFs and fund flows of index-based ETFs surging, Marty’s advice is proving timely. In this blog post, we review key index-based product performance leading up to the Fed’s intervention and detail the ETF fund flows that followed. Back…
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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)….
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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…
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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…
- Categories Fixed Income
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