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.
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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