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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.

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6/13/2023

6 min read


Topic

Fixed Income

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.
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