- Loan prices have fallen sharply in tandem with other markets, but with the massive fiscal stimulus packages, has come some purposeful buying – at least in the large-cap, well rated issuers in defensive sectors.
- Even with a global downturn on the horizon, we would suggest that this is a period of dislocation for loan-prices rather than fundamental peril for large, strong, liquid companies that can wait out the next few months.
- During this time of volatility, it is important to remember the underlying strengths of the loan asset class.
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The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.