US treasury yields have risen

US treasury yields have risen from 0.8% end of 2020 to currently 1.7% and bond investors have suffered painful losses on their long-duration bonds (up to -5% ytd). Senior secured loans are valued with a fixed credit risk premium combined with the money market rate. They are so-called “floaters” and tend to gain in value when interest rates rise while corporate default rates remain stable. Senior secured loans fare relatively well versus fixed rated bonds should broader interest rate hikes become a reality in the future.

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US treasury yields have risen
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