Senior Portfolio Manager
Managing Director, Head of Leveraged Finance
Seix Investment Advisors LLC
George Goudelias discusses the U.S. election results and potential implications for leveraged loans in this timely discussion with Virtus’ Chief Market Strategist, Joe Terranova.
Highlights from the discussion include:
- Impact of election results on leveraged loans and trajectory of interest rates
- Evaluation of technical factors in the loan space
- Low rate environment
- Current portfolio positioning
- Default rates
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Credit & Interest: Debt instruments are subject to various risks, including credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt instruments may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities. Bank Loans: Loans may be unsecured or not fully collateralized, may be subject to restrictions on resale and/or trade infrequently on the secondary market. Loans are subject to credit and call risk, may be difficult to value, and have longer settlement times than other investments, which can make loans relatively illiquid at times. High Yield Fixed Income Securities: There is a greater risk of issuer default, less liquidity, and increased price volatility related to high yield securities than investment grade securities. Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio's assets as intended. Prospectus: For additional information on risks, please see the fund’s prospectus.
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