senior secured loans

With recessionary fears still dominating the outlook, investors looking to dip their toes into private credit should consider senior secured loans, which offer compelling relative value and added risk mitigation, Invesco said.

Senior secured loans make an attractive proposition in an inflationary environment, says Invesco’s Ashley O’Connor, especially when returns are stable and company defaults are at low tide.

Senior secured loans act as an important inflationary hedge in times of rising inflation according to Invesco’s chief investment officer.

One part of the market that is benefitting from inflation and interest rate increases is private debt; senior secured loans, in particular, have returned 4.8 per cent over the past two years.

Debt assets may be de jour, but the income they produce is fraught with peril if it doesn’t include the kind of diversity senior secured loans provide.