Alcentra advocates leveraged loans over high yield
Debt investors should opt for senior secured loans, not high yield bonds, according to the chief investment officer of Alcentra, BNY Mellon Asset Management’s specialist high yield unit.
The risk-return for senior secured loans is “stupendously attractive,” says Alcentra's CIO, Paul Hatfield. Yields vary between 7% and 9%, with margins of 350 basis points to 500bp over Libor, and discounts on issuance of between 2% and 3%. New issues also feature Libor floors.
Pre-crisis, however, spreads of
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Structured products
Risk Management
EBA warns banks over loan-loss model tinkering
Senior executive says methods of adjusting IFRS 9 models to “smooth” outputs should be investigated
Receive this by email