Know Your Loans – Why Active Management Matters

A disciplined approach and careful selection can help loan investors avoid potential pitfalls as the economic cycle continues to age.

  • No signs of deteriorating fundamentals in late Q4
  • Liquidity matters when selecting loans
  • Low refinancing rates in 2019 have been good for the bank loan market
  • Active management in the bank loans space has its advantages, including buying smaller loans, special situations, and out-of-benchmark selections
  • Deep credit research expertise at Loomis, Sayles & Co. and security selection has the potential to add alpha
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. Past performance is no guarantee of, and not necessarily indicative of, future results. This video is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of November 7, 2019 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.

Risks:
Bonds may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Below investment grade bonds may be subject to greater risks (including the risk of default) than other fixed-income securities.

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