Senior Loan | Voya Investment Management

Senior Loan


This strategy is an actively managed, ultra-short duration floating-rate income strategy that invests primarily in privately syndicated, below investment grade senior secured corporate loans. We believe that credit selection implemented by experienced credit analysts and consistent application of our investment process within a disciplined research and risk management framework is critical to producing superior long-term, risk-adjusted performance.

Key Benefits

  • Highly diversified portfolios with transparency to underlying assets
  • Ultra-short duration, secured corporate credit
  • Appropriate liquidity options
  • Large, experienced, cycle proven investment team
  • Disciplined, consistent investment process



As of 8/31/221 Month3 MonthYTD1yr3yr5yr10yrSince Inception (4/01/01)
Composite Gross1.600.95-1.84-0.442.192.943.895.14
Composite Net1.560.82-2.17-0.931.682.433.374.56
Gross Excess Return0.06-0.53-0.83-0.81-0.97-0.590.000.59

* Morningstar LSTA Leveraged Loan Index

Past performance does not guarantee future results.

Periods greater than one year are annualized. Performance data is considered final unless indicated as preliminary. Monthly performance is based on full GIPS Composite returns. Access the GIPS page for full composite details.

The Composite performance information represents the investment results of a group of fully discretionary accounts managed with the investment objective of outperforming the benchmark. Information is subject to change at any time. Gross returns are presented after all transaction costs, but before management fees. Returns include the reinvestment of income. Net performance is shown after the deduction of a model management fee equal to the highest fee charged.


Investment Team

Jeffrey Bakalar

Jeffrey A Bakalar

Group Head and Chief Investment Officer, Leveraged Credit Group

Years of Experience: 36

Years with Voya: 24

Jeff Bakalar is senior managing director, group head and chief investment officer in the leveraged credit group at Voya Investment Management. He is chairman of the group’s investment committee. He serves as chair of the board of directors of the Loan Syndications and Trading Association. Jeff earned a BS in finance from University of Illinois at Chicago, and an MBA from DePaul University.


Principal Risk

Risk is inherent in all investing. The following are the principal risks associated with investing in senior loans. Credit risk: Senior loans are below investment grade instruments that carry a higher than normal risk that borrowers may not make timely payments of principal and interest. Failure by borrowers to make such payments may cause the yield and/or the value of your investment to decline. Interest rate risk: The yield on senior loans is directly affected by changes in market interest rates. If such rates fall, the yield may fall. Also, if overall interest rates on loans decline, the yield may fall and the value of the assets may decrease. When market interest rates rise, there may be a delay in the rise in the yield due to a lag between changes in such rates and the resetting of the floating rates on the loans. Limited secondary market for loans: Loans do not trade on an established exchange. There is a limited secondary market for loans. Demand for loans: An increase in demand for loans may adversely affect the rate of interest payable on new loans, 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, which could cause the value of loans to decline. Use of leverage: The strategy may engage in leverage for some portfolios. The use of leverage in a portfolio may have a magnifying effect on the returns for a portfolio, both positively and negatively. Foreign currency: The strategy may invest in loans denominated in currencies other than the U.S. dollar. While the strategy seeks to hedge foreign currency risk to the greatest extent practicable, such hedging may not be effective.

This is not, and is not intended to be, a description of all risks of investing in senior loans. The applicable offering documents should be read carefully before investing.