Past Is Prologue

Revisiting the Use of Corporate Loans to Manage Rate Sensitivity | August 2016

Lost amid the consternation surrounding record equity valuations and the focus on the amount of developed market debt trading with negative yields was a milestone in the corporate loan universe. For the first time since May 2009, 3-Month LIBOR, the benchmark rate for floating rate corporate loans, is above 75 bps. Regardless of whether this historic move represents a temporary shift or a lasting trend, there are a number of both near- and long-term effects of this rate level on the loan market, from changes to deal structures to potential benefits to investors in leveraged loans…

To download the full newsletter please complete the form below.