Loans performed well, while high yield faced some headwinds

Leveraged loans continued to perform well during the recent risk-off mode and upmove in interest rates, while US high yield bonds were negatively affected. The floating rate feature in leveraged loans offers a clear advantage to longer duration high yield bonds. In addition, leveraged loans offer a similar credit spread and only a slightly lower yield-to-maturity as compared to high yield bonds.

Read more about Credit Investments

Performance of US Leveraged Loans vs. High Yield Bonds
Share on linkedin
Share on twitter
Share on email
error: Content is protected !!