Podcast: Waiting for Net Interest Margins to Improve? No Need to Wait – We Can Help Now! | Voya Investment Management

Banks are facing historical lows in net interest margins due to costs of funding rose faster than loan yields. New loan growth is tepid and increased competition and access has hampered growth while funding through deposits is the current priority, but what levers can banks pull to accelerate out of this current NIM trough.

 

 

StoneCastle Partners and American Bankers Association are not an affiliate or subsidiary of Voya IM.

Important Information
This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management (“Voya IM”) considers reliable; Voya IM does not represent that such information is accurate or complete. Certain statements contained herein may constitute “projections,” “forecasts” and other “forward-looking statements” which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may differ materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Voya IM assumes no obligation to update any forward-looking information. 

Risk is inherent in all investing. The following are the principal risks associated with investing in the Voya Senior Loan Strategy. This is not, and is not intended to be, a description of all risks of investing in the Strategy. 

Credit Risk: The Strategy invests a substantial portion of its assets in below investment grade senior bank loans and other below investment grade assets. 
Interest Rate Risk: The yield on senior loans is directly affected by changes in market interest rates. 
Leverage Risk: The Strategy may borrow money for investment purposes. Borrowing increases both investment opportunity and investment risk. 
Limited secondary market for loans: Because of the limited secondary market for loans, a portfolio invested under the Strategy may be limited in its ability to sell loans in its portfolio in a timely fashion and/or at a favorable price. 
Demand for loans: An increase in demand for loans may adversely affect the rate of interest payable on new loans acquired by a portfolio invested under the Strategy, and it may also increase the price of loans in the secondary market. A decrease in the demand for loans may adversely affect the price of loans in a portfolio invested under the Strategy, which could cause such portfolio’s value to decline.  

Past performance does not guarantee future results.

Not FDIC Insured | May Lose Value | No Bank Guarantee
For financial professional use only. Not for inspection by, distribution or quotation to, the general public.

Top