Senior Loan 2019 Outlook

Dan Norman

Dan Norman

Group Head and Senior Managing Director, Senior Loans

Jeffrey Bakalar

Jeffrey Bakalar

Group Head and Chief Investment Officer, Senior Loans

Executive Summary

  • With the prospects of further increases in LIBOR and stable-to-expanding credit spreads, we believe loans will continue to provide high income and attractive risk-adjusted returns in 2019
  • Despite increasing credit risk and uncertainty, much like the asset class did in 2018, we believe loans will continue to dampen portfolio volatility in 2019
  • Our 2019 outlook seeks to guide investors to a better understanding of the current loan market environment as they navigate the income investment landscape and establish portfolio allocation strategies for the coming year