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 200

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: