Insight
Five Reasons to Buy European Loans
In a world where interest rates have increased dramatically and geopolitical risks are elevated, investors are torn between seeking yield and preserving capital. European loans can help investors pursue both goals.
![Geometric silver circles contrast against a blue sky. Geometric silver circles contrast against a blue sky.](/globalassets/assets/insights/hero/insight-five-reasons-to-buy-european-loans-725x385.jpg)
Key takeaways
- European loans currently offer investors attractive levels of yields following their steep sell-off in 2022.
- Their senior secured status provides stronger creditor protections than those offered by unsecured or subordinated bonds.
- We believe bottom-up considerations are often more important drivers of returns than top-down considerations, aiding the diversification benefits of this asset class.
- Both fundamental and technical factors are currently supportive of strong expected risk-adjusted returns.