• Bank loans are not about whatever value people feel like putting on them, that’s essentially what equities are. They are about being paid back historically in an average of about 3-years. So the way to think of their value is to think about the odds of them being paid back one by one as you all know they are senior, they are secured by collateral, and they tend to trade near par most of the time.
  • We believe there are three roads back to par for most loans. The first one, and most plausible we believe is market should recover in 6 to 12 months and loans would get back up to something close to par by collateralized loan obligation managers (CLOs) who’d like to buy loans at a discount.
  • Prices are below what we think they would be in a normal recession, and normal recessions take a lot longer to resolve than this crisis should. They’re cheap fundamentally and fundamentals win in the end.
Fixed-Income securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity. Mortgage-related and asset-backed securities are subject to the risks of the mortgages and assets underlying the securities. Other related risks include prepayment risk which is, the risk that the securities may be prepaid, potentially resulting in the reinvestment of the prepaid amounts into securities with lower yields. Below investment-grade fixed-income securities may be subject to greater risks (including the risk of default) than other fixed-income securities. Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than U.S. securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets. Currency exchange rates between the U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. Currency exchange rates between the US dollar and foreign currencies may cause the value of the Fund's investments to decline. Inflation protected securities move with the rate of inflation and carry the risk that in deflationary conditions (when inflation is negative) the value of the bond may decrease.

Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit im.natixis.com or call 800-862-4863 for a prospectus or a summary prospectus containing this and other information. Read it carefully.

This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed are as of March 18, 2020 and may change based on market and other conditions.

Natixis Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.

Natixis Distribution, L.P. (fund distributor, member FINRA | SIPC) and Loomis, Sayles & Company, L.P. are affiliated.

3005111.1.1