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.
- 08/10/2021
- Blog, Newsflash
Loans performed well, while high yield faced some headwinds
- Credit Spread, interest rates, Leveraged Loans, US high yield bonds
