The continued case for senior secured loans

Traditionally, many investors have (mistakenly) viewed senior secured loans as a tactical, rate-based trade. However, more are now recognizing the many resilient attributes of the asset class and loans are now becoming a strategic core holding in a variety of investor portfolios. This shift is being driven by a deeper understanding of how the asset class performs across different interest rate and economic environments. The most recent case study to look to is the pre-pandemic year of 2019, when the Federal Reserve executed three interest rate cuts to the tune of a total 75 bps. The loan market delivered a +8.57% return that year... Click here to read the full newsletter.

- Stan Sokolowski, Managing Director, Senior Portfolio Manager and Deputy Chief Investment Officer